Recording Purchase and Sales Transactions

Raymond Company and Geeslin Company both use a perpetual inventory system. The following transactions occurred during the month of January:

Jan. 1		Raymond purchased $5,000 of merchandise on account from Geeslin with credit terms of 2/10, n/30. The cost of the merchandise was $3,750. Assume that Geeslin uses the net method to record sales discounts.
8		Raymond returned $500 of themerchandise to Geeslin. The cost of the merchandise returned was $375.
10		Raymond paid invoices totaling $3,000 to Geeslin for the merchandise purchased on January 1.
30		Raymond paid Geeslin the balance due.

Required:

For a compound transaction, if an amount box does not require an entry, leave it blank.

Prepare the journal entries to record these transactions on the books of Raymond.

Brief Exercise 6-34 Recording Purchase and Sales Transactions Raymond Company and Geeslin Company both use a perpetual inventory system. The following transactions occurred during the month of January: Jan. 1 Raymond purchased $5,000 of merchandise on account from Geeslin with credit terms of 2/10, n/30. The cost of the merchandise was $3,750. Assume that Geeslin uses the net method to record sales discounts 8 Raymond returned $500 of themerchandise to Geeslin. The cost of the merchandise returned was $375 10 Raymond paid invoices totaling $3,000 to Geeslin for the merchandise purchased on January 1 30 Raymond paid Geeslin the balance due Required For a compound transaction, if an amount box does not require an entry, leave it blank. Prepare the journal entries to record these transactions on the books of Raymond Jan. 1 Cash Inventory (Purchased inventory on credit) Jan. 8 Inventory 500 Cost of Goods Sold 500 (Returned merchandise) Jan. 10 Inventory 5,000 Cash 3,000 Accounts Payable 2,000 (Recorded payment within discount period) Jan. 30