Question: Recording Journal Entries for Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:
June 3 Purchased goods for $3,200 from Diamond Ltd. with terms 2/10, n/30.
5 Returned goods costing $1,100 to Diamond Ltd. for full credit.
6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.
11 Paid the balance owed to Diamond.
22 Paid Club Corp. in full.
Required: Assume Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Prepare journal entries to record the transactions.