On March 1, Poff’s Co., a women’s clothing store, purchased $79,500 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Poff’s returned $9,300 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period. Journalize Poff’s entries to record (a) the purchase, (b) the merchandise return, and (c) the payment. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
On March 1, Poff’s Co., a women’s clothing store, purchased $79,500 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Poff’s returned $9,300 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period. Journalize Poff’s entries to record (a) the purchase, (b) the merchandise return, and (c) the payment. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 1, Poff’s Co., a women’s clothing store, purchased $79,500 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Poff’s returned $9,300 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period.
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