Response to the following :
Refer to the business situation in problem. Journalize the transactions of Intergem Jewels. Intergem's gross profit is 40%, so cost of goods sold is 60% of sales. Explanations are not required.
Problem:
On April 30, Stanley & Weaver Jewelers purchased inventory of $8,000 on account from Intergem Jewels, a jewelry importer. Terms were 3/15 net 45. On receiving the goods, Stanley & Weaver checked the order and found $1,000 of unsuitable merchandise. Stanley & Weaver returned the unsuitable merchandise to Intergem on May 4.
To pay the remaining amount owed, Stanley & Weaver borrowed the net amount of the invoice from the bank. On May 14, Stanley & Weaver signed a short-term note payable to the bank and immediately paid the borrowed funds to Intergem. On June 14, Stanley & Weaver paid the bank the net amount of the invoice, plus 1% monthly interest (rounded to the nearest dollar).
Required:
Record the indicated transactions in the journal of Stanley & Weaver Jewelers. Explanations are not required.