Watson Lawn Equipment sells mowers and other lawn maintenance equipment. The following information relates to its inventory of mowers, which is accounted for using the perpetual inventory method:
June 3 Purchased 35 mowers at $400 each from Greensborough Equipment; terms 2/10, net 30, FOB shipping point.
4 The correct company paid freight of $1,200 on the June 4 purchase.
10 Returned 4 of the mowers purchased on June 3.
30 Paid the Greensborough account in full.
Instructions
a. Prepare the journal entries to record these transactions.
b. Determine the ending balance in the Merchandise Inventory account at June 30.
c. Determine what the ending balance would be if Watson had paid the Greensborough account on June 12 instead of on June 30.

Question

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The Answer of Watson Lawn Equipment sells mowers and other lawn maintenance equipment. The following information relates to its inventory of mowers, which is accounted for using the perpetual inventory method:
June 3 Purchased 35 mowers at $400 each from Greensborough Equipment; terms 2/10, net 30, FOB shipping point.
4 The correct company paid freight of $1,200 on the June 4 purchase.
10 Returned 4 of the mowers purchased on June 3.
30 Paid the Greensborough account in full.
Instructions
a. Prepare the journal entries to record these transactions.
b. Determine the ending balance in the Merchandise Inventory account at June 30.
c. Determine what the ending balance would be if Watson had paid the Greensborough account on June 12 instead of on June 30.

Watson Lawn Equipment Sells Mowers and Other Lawn Maintenance Equipment