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Consider the following transactions for Partytime Toys:
October 8 Partytime Toys buys $141,800 worth of MegoBloack toys on account with credit terms of 2/10, n/30
October 11 Partytime Toys returns $14,100 of the merchandise to MegoBlock due to damage during shipment.
October 15 Partytime Toys paid the amount due, less the return and discount.
Required
1. Journalize the purchase transactions. Explanations are not required.
2. In the final analysis, how much did the inventory cost Partytime Toys?

Respuesta :

hammadacca

Answer:

1. Journalize the entries:

October 8:

Dr Purchases $141,800

Cr Account Payable $141,800

October 11:

Dr Accounts Payable $ 14,100

Cr Purchase Return $ 14.100

October 15:

Dr Accounts Payable $114,930 (141,800-14,100)*90%

Cr Cash $ 114,930.

2. The inventory cost $114,930 to Party Time Toys.

Explanation:

anvimalik867

First, we have to Journalize the entries;

October 8:

Dr. Purchases $141,800

Cr Account Payable $141,800

October 11:

Dr Accounts Payable $ 14,100

Cr Purchase Return $ 14.100

October 15:

Dr Accounts Payable $114,930 (141,800-14,100)*90%

Cr Cash $ 114,930.

so, The inventory cost $114,930 to Party Time Toys.

What is a Transaction?

A transaction is a business event that has a monetary impact on an entity's financial statements and is recorded as an entry in its accounting records. Examples of transactions are as follows:

Paying a supplier for services rendered or goods delivered.

What is a transaction in a bank?

A bank transaction is any money that moves in or out of your bank account. Types of bank transactions include cash withdrawals or deposits, checks, online payments, debit card charges, wire transfers, and loan payments.

Learn more about transactions here:https://brainly.com/question/24835236

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