Gospel Ministries purchased on account two pianos on April 3, 2019 for $6,600. The company agreed to pay an extra $100 to have the seller deliver the pianos. Unfortunately, one of the pianos was damaged during transit. The seller agreed to deduct $200 from the amount owed. Gospel Ministries paid for the pianos in full on May 3, 2019.

Prepare the journal entries that Gospel Ministries should make on April 3 and May 3.

Question

Gospel Ministries purchased on account two pianos on April 3, 2019 for $6,600. The company agreed to pay an extra $100 to have the seller deliver the pianos. Unfortunately, one of the pianos was damaged during transit. The seller agreed to deduct $200 from the amount owed. Gospel Ministries paid for the pianos in full on May 3, 2019.
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Prepare the journal entries that Gospel Ministries should make on April 3 and May 3.

Quizplus · Accepted Answer

The Answer of Gospel Ministries purchased on account two pianos on April 3, 2019 for $6,600. The company agreed to pay an extra $100 to have the seller deliver the pianos. Unfortunately, one of the pianos was damaged during transit. The seller agreed to deduct $200 from the amount owed. Gospel Ministries paid for the pianos in full on May 3, 2019.
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Prepare the journal entries that Gospel Ministries should make on April 3 and May 3.

Gospel Ministries Purchased on Account Two Pianos on April 3