During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence
of events was as follows: |
| June 3 | Purchased goods for $6,700 from Diamond Inc. with terms 2/10, n/30. |
| 5 | Returned goods costing $2,400 to Diamond Inc. for full credit. |
| 6 | Purchased goods from Club Corp. for $2,300 with terms 2/10, n/30. |
| 11 | Paid the balance owed to Diamond Inc. |
| 22 | Paid Club Corp. in full. |
| Required: |
|
Prepare journal entries to record the transactions, assuming Ace uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
June 11:
Accounts Payable = $6,700 – $2,400 = $4,300 Cash = $4,300 × 98% = $4,214 Inventory = $4,300 × 2% = $86 |
