Question #1

The following information relates to Walnut Creek Office Center, Inc.

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

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

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

4. On April 8 returned some of April 5 merchandise to Tasco Company which cost $2,000.

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

6. On April 17 sold merchandise costing $2.600 to Baylor Company for $4,200 on open account with credit terms of 3/15, net 60.

7. On April 28, Baylor Company returned $500 of their April 17 purchase. Note: the cost of the merchandise returned was $275.

8. On May 1 received payment from Baylor Company on their balance due.

Instructions:

(a)Prepare the journal entries to record the transactions listed above on the books of Walnut Creek Office Center, Inc.

Note: the company uses a perpetual inventory system.

(b)1. Assume that Walnut Creek Office Center Co. paid the balance due to Tasco Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

2. Assume Baylor paid their balance due on June 1 instead of May 1. Prepare the journal Entry to record the payment received.

Typing please.