Question
Pronghorn Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from DeVito Ltd. for $25,700,
Pronghorn Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:
April | 3 | Purchased merchandise from DeVito Ltd. for $25,700, terms 1/10, n/30, FOB shipping point. | ||
6 | The appropriate company paid freight costs of $700 on the merchandise purchased on April 3. | |||
7 | Purchased supplies on account for $5,450. | |||
8 | Returned damaged merchandise to DeVito and was given a purchase allowance of $3,400. The merchandise was repaired by DeVito and returned to inventory for future resale. | |||
30 | Paid the amount due to DeVito in full. |
Assume that Pronghorn paid the balance due to DeVito on April 12 instead of April 30. Prepare the journal entry to record this payment on Pronghorn s books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to the nearest whole dollar, e.g. 5,725.)
Date | Account Titles and Explanation | Debit | Credit |
Apr. 12 | |||
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