3. Journalize the following: On May 4, Hanlon purchased $30,000 of merchandise with credit terms of 2/10, n30 On May 21, Hanlon purchased $20.000 of merchandise for cash with shipping terms Hanlon returned $350 of merchandise to Smith Wholesale on May 6 before paying for the goods Using the purchase transaction from May 4 and no returns, Hanlon pays the amount owed on May 10. May 10 is within the discount period and Hanlon will take the 2% discount provided in the terms 2/10, n30 Assume we also had the return on May 6 of $350. Hanlon pays the amount owed less the return and takes the 2% discount on May 12
3. Journalize the following: On May 4, Hanlon purchased $30,000 of merchandise with credit terms of 2/10, n30 On May 21, Hanlon purchased $20.000 of merchandise for cash with shipping terms Hanlon returned $350 of merchandise to Smith Wholesale on May 6 before paying for the goods Using the purchase transaction from May 4 and no returns, Hanlon pays the amount owed on May 10. May 10 is within the discount period and Hanlon will take the 2% discount provided in the terms 2/10, n30 Assume we also had the return on May 6 of $350. Hanlon pays the amount owed less the return and takes the 2% discount on May 12
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter11: Accounting For Purchases And Cash Payments
Section: Chapter Questions
Problem 1CP
Related questions
Question
![3. Journalize the following:
On May 4, Hanlon purchased $30,000 of merchandise with credit terms
of 2/10, n30
On May 21, Hanlon purchased $20.000 of merchandise for cash with
shipping terms
Hanlon returned $350 of merchandise to Smith Wholesale on May
6 before paying for the goods
Using the purchase transaction from May 4 and no returns, Hanlon pays
the amount owed on May 10. May 10 is within the discount period and
Hanlon will take the 2% discount provided in the terms 2/10, n30
Assume we also had the return on May 6 of $350. Hanlon pays the
amount owed less the return and takes the 2% discount on May 12](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5fb713b-6c5e-4965-a3e3-a9c1de7bc4e4%2F67685423-c4bb-4a41-8aa5-5c086ae5eb86%2F95l495e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Journalize the following:
On May 4, Hanlon purchased $30,000 of merchandise with credit terms
of 2/10, n30
On May 21, Hanlon purchased $20.000 of merchandise for cash with
shipping terms
Hanlon returned $350 of merchandise to Smith Wholesale on May
6 before paying for the goods
Using the purchase transaction from May 4 and no returns, Hanlon pays
the amount owed on May 10. May 10 is within the discount period and
Hanlon will take the 2% discount provided in the terms 2/10, n30
Assume we also had the return on May 6 of $350. Hanlon pays the
amount owed less the return and takes the 2% discount on May 12
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