Recording Purchase TransactionsJeet Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April.On April 1, Jeet purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225.On April 1, Jeet paid freight charges of $250 cash to have the goods delivered to its warehouse.On April 8, Jeet returned $800 of the merchandise. The cost of the merchandise returned was $500.On April 10, Jeet paid Reece the balance due.Required:1. Prepare the journal entries to record the April 1 purchase of merchandise and payment of freight by Jeet. 2. Prepare the journal entry to record the April 8 return of merchandise by Jeet. 3. Prepare the journal entry to record the April 10 payment to Reece by Jeet. For a compound transaction, if those boxes in which no entry is required, leave the box blank.

Name: Recording Purchase TransactionsJeet Company and Reece Company use the
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Description: Recording Purchase TransactionsJeet Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April.On April 1, Jeet purchased merchandise on account from Reece with credit terms of 2/10, n/

Discount = Amount payable x Discount rate = ($3100-$800) x 2% = $46

Answered: Jeet Company and Reece Company use the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Recording Purchase Transactions

Jeet Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April.

On April 1, Jeet purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225.
On April 1, Jeet paid freight charges of $250 cash to have the goods delivered to its warehouse.
On April 8, Jeet returned $800 of the merchandise. The cost of the merchandise returned was $500.
On April 10, Jeet paid Reece the balance due.

Required:

1. Prepare the journal entries to record the April 1 purchase of merchandise and payment of freight by Jeet.

2. Prepare the journal entry to record the April 8 return of merchandise by Jeet.

3. Prepare the journal entry to record the April 10 payment to Reece by Jeet. For a compound transaction, if those boxes in which no entry is required, leave the box blank.

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