Purchase Related Transactions The Stationery Company purchased merchandise on account from a supplier for $28,900, terms 1/10, 1/30. The Stationery Cometned $100 of the merchandise and received full credit. a. Il The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the votum? Purchase-Related Transactions A retailer is considering the purchase of 250 units of a specific item from either of two suppliers. Their offers are as follows: Supplier One: $400 a unit, total of $100,000, 1/10, 1/30, no charge for freight Supplier Two: $399 a unit, total of $99,750,2/10, 1/30, plus freight of $975 Price of Supplier One: Price of Supplier Two: Which of the two offers, Supplier One or Supplier Two, Vields the lower price? Purchase-Related Transactions 20.580 The debits and credits from four related transactions are presented in the following accounts Cash Accounts Payable (2) 300 (3) 3,920 16,660 (4) 16,660 Inventory (1) 20,580 (3) 3,920 (2) 300 Describe cach transaction 1. 2. 3. Purchase-related transactions using perpetual inventory system The following selected transactions were completed by Niles co during March of the current years Mar. 1. Purchased merchandise from Haas Co., $43,250, terms FOB shipping point, 2/10/com. Prepunid freight of $650 wils added to the invoice 5. Purchased merchandise from Whitman Co, $19,175, terms FOB destination, 11/30 10. Pald Haas Co. for involce of March 1. 13. Purchased merchandise from Jont Co., $15,550, terms FOB destination, 2/10, 1/30 14. Issued debit memo to Jost Co. for $3,750 of merchandise returned from purchase on March 131 18. Purchased merchandise from Faithurst Company, $13,560, terms FOB shipping point, n/com 18. Paid freight of $140 on March 18 purchase from Fairhurst Company 19. Purchased merchandise from Bickle Co., $6,500, terms FOB destination, 2/10, 1/30 23. Paid Jost Co. for Invoice of March 13, less debit memo of March 14 29. Paid Bickle Co, for invoice of March 19, 31. Paid Fairhurst Company for involce of March 18. 31. Pald Whitman Co, for invoice of March 5. Required: Journalize the entries to record the transactions of Niles Co. for March For a compound transaction, if an amount box does not require an entry, leave it blank Mar. 1 Mar. 1 Mar. 5 Mar. 10 Mar. 13 Mar. 14 Mar. 18-purchase Mar. 18-freight Mar. 19 Mar. 23 eBook Ignment-takeinprogresstale Mar. 14 Mar. 18-purchase kalakal Mar. 18-freight Mar. 19 Mar. 23 Mar. 29 Mar. 31-Fairhurst Mar 31-Whitman
