Chapter 4, Problem 38AP

Journalizing inventory purchases, returns, and freight transactions (Learning Objectives 3 & 5) 15-20 min.

The following purchase-related transactions for Terroso, Inc., occurred during the month of April.

Apr 3	Purchased $2,900 of merchandise, paid cash.
9	Purchased $250 of supplies on account from Office Unlimited. Terms, n/30, FOB destination.
16	Purchased $4,200 of merchandise on account from URM Supply, Inc. Terms, 3/15, n/30, FOB shipping point.
22	Received a credit memo in the amount of $1,400 from URM Supply, Inc., for damaged goods from the April 16 purchase that were returned.
28	Paid for the supplies purchased on April 9.
28	Paid URM Supply, Inc., in full for the April 16 purchase.

Requirement

1. 1. Journalize the transactions for Terroso, Inc., assuming the “net” method is used. No explanations are necessary.