This information relates to Marin Co.

1. On April 5, purchased merchandise from Cullumber Company for $27,900, terms 2/10, n/30.

2. On April 6, paid freight costs of $670 on merchandise purchased from Cullumber.

3. On April 7, purchased equipment on account for $31,600.

4. On April 8, returned $3,700 of April 5 merchandise to Cullumber Company.

5. On April 15, paid the amount due to Cullumber Company in full.

Prepare the journal entries to record the transactions listed above on Cullumber Co.âs books. Cullumber Co. uses a perpetual inventory system.

1. April 5

Dr Inventory 27,900

Cr Accounts Payable 27,900

2. April 6

Dr Inventory 670

Cr Cash 670

3. April 7

Dr Equipment 31,600

Cr Accounts Payable 31,600

4. April 8

Dr Accounts Payable 3,700

Cr Inventory 3,700

5. April 15

Dr Accounts Payable 24,200

Cr Cash 23,716

Cr Inventory 484

Explanation:

Cullumber Company Journal entry

1. April 5

Dr Inventory 27,900

Cr Accounts Payable 27,900

2. April 6

Dr Inventory 670

Cr Cash 670

3. April 7

Dr Equipment 31,600

Cr Accounts Payable 31,600

4. April 8

Dr Accounts Payable 3,700

Cr Inventory 3,700

5. April 15

Dr Accounts Payable 24,200

(27,900 - 3,700)

Cr Cash 23,716

Cr Inventory 484

(2/100*24,200)