Murphy Hardware bought 800 3-cubic-feet bags of organic peat moss from Mitchell Garden Distributors on account. Each bag cost $6.25. Murphy paid Reed Trucking $275 to have the bags of peat moss shipped to its warehouse. Murphy returned 20 bags that were defective and paid for the remainder. Murphy uses the perpetual inventory system. 1. Prepare the journal entry to record the purchase of 800 bags of peat moss. 2. Prepare the journal entry to record the payment of freight. 3. Prepare the journal entry to record the return of 20 defective bags. 4. Prepare the journal entry to record payment for the purchase. No discount was offered.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Murphy Hardware bought 800 3-cubic-feet bags of organic peat moss from Mitchell Garden Distributors
on account. Each bag cost $6.25. Murphy paid Reed Trucking $275 to have the bags of peat moss
shipped to its warehouse. Murphy returned 20 bags that were defective and paid for the remainder.
Murphy uses the perpetual inventory system.
1.
Prepare the journal entry to record the purchase of 800 bags of peat moss.
2.
Prepare the journal entry to record the payment of freight.
3.
Prepare the journal entry to record the return of 20 defective bags.
4.
Prepare the journal entry to record payment for the purchase. No discount was offered.
Transcribed Image Text:Murphy Hardware bought 800 3-cubic-feet bags of organic peat moss from Mitchell Garden Distributors on account. Each bag cost $6.25. Murphy paid Reed Trucking $275 to have the bags of peat moss shipped to its warehouse. Murphy returned 20 bags that were defective and paid for the remainder. Murphy uses the perpetual inventory system. 1. Prepare the journal entry to record the purchase of 800 bags of peat moss. 2. Prepare the journal entry to record the payment of freight. 3. Prepare the journal entry to record the return of 20 defective bags. 4. Prepare the journal entry to record payment for the purchase. No discount was offered.
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