Stylon Co., a women's clothing store, purchased $48,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $7,500, receiving a credit memo. a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank. b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank. c. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank. d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.

Question

Rosa Sheppard

Business

8 September, 04:38

Stylon Co., a women's clothing store, purchased $48,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $7,500, receiving a credit memo. a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank. b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank. c. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank. d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.

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Mohammed Pugh · Answer 1

Stylon Company.

General Journal

Net Method

The following entries have been passed using net method.

Sr. No Particulars Debit Credit

a. Merchandise Inventory 47040

Accounts Payable 47040

Purchased $48,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system

b. Accounts Payable 7350

Merchandise Inventory 7350

Stylon returned merchandise with an invoice amount of $7,500,

c. Accounts Payable 39690

Cash 39690

Stylon's entry to record the payment within the discount period of 10 days

d. Discount Lost 810

Accounts Payable 810

Accounts Payable 40500

Cash 40500

Stylon's entry to record the payment beyond the discount period of 10 days.