Chapter 12, Problem 3PB

Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc.

A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3.

B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8.

C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction.

D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.