Presented below are transactions related to Bramble, Inc.May 10(a)111924Purchased goods billed at $15,200 subject to cash discount terms of 2/10, n/60.Purchased goods billed at $11,800 subject to terms of 1/15, n/30.Paid invoice of May 10.Purchased goods billed at $12,300 subject to cash discount terms of 2/10, n/30.Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at netamounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry"for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indentmanually. List all debit entries before credit entries.)

Answered: May 10 (a) 11 19 24 Purchased goods…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below are transactions related to Bramble, Inc.
May 10
(a)
11
19
24
Purchased goods billed at $15,200 subject to cash discount terms of 2/10, n/60.
Purchased goods billed at $11,800 subject to terms of 1/15, n/30.
Paid invoice of May 10.
Purchased goods billed at $12,300 subject to cash discount terms of 2/10, n/30.
Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net
amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry"
for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent
manually. List all debit entries before credit entries.)

Expert Solution

Step 1: Define Purchase Discount

The company purchases goods from suppliers and suppliers also offer a discount to the company. The company can use net amount to record discounts. The discount received from the supplier decreases cost. The company can also use gross method to record purchases and discount on purchases.

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Follow-up Question

**Instructions for Adjusting Entries on May 31**

Assuming no purchase or payment transactions other than those given above, prepare the adjusting entry required on May 31 if financial statements are to be prepared as of that date.

*Note*: If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List the debit entry before the credit entry.

**Journal Entry Form**

| Date | Account Titles and Explanation | Debit | Credit |
|-------|--------------------------------|-------|--------|
| May 31| | | |
| | | | |
| | | | |

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