Problem 1. This information relates to Sharper Co.

1. On April 5 purchased merchandise from Newport Company for $22,000, terms 2/10, n/30.

2. On April 6 paid freight costs of $900 on merchandise purchased from Newport.

3. On April 7 purchased equipment on account for $26,000.

4. On April 8 returned some of April 5 merchandise to Newport Company which cost $3,600.

5. On April 15 paid the amount due to Newport Company in full.

Instructions

(a) Prepare the journal entries to record the transactions listed above on the books of Sharper Co. Sharper Co. uses a perpetual inventory System.

(b) Assume that Sharper Co. paid the balance due to Newport Company on May 4 instead of April 15. Prepare the journal entry to record this payment.