Recording journal entries for purchases purchase discounts


Recording Journal Entries for Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3]

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:

  June 3 Purchased goods for $6,500 from Diamond Inc. with terms 3/10, n/30.

  5 Returned goods costing $2,300 to Diamond Inc. for full credit.

  6 Purchased goods from Club Corp. for $2,200 with terms 3/10, n/30.

  11 Paid the balance owed to Diamond Inc.

  22 Paid Club Corp. in full.

Required:

Prepare journal entries to record the transactions, assuming Ace uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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Financial Accounting: Recording journal entries for purchases purchase discounts
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