Reid Art Supply Company uses a perpetual inventory system. The company had the following transactions during August, 2015:
Aug. 5: Purchased $\$ 2,900$ of merchandise on account. Freight and credit terms were $\mathrm { FOB }$ shipping point, $3 / 15 , \mathrm { n } / 60$ .
Aug. 9: Paid transportation costs of $\$ 440$ for the Aug. 5 purchase.
Aug. 10: Returned $\$ 600$ of defective merchandise that had been purchased on Aug.5.
Aug. 15: Paid for the merchandise purchased on Aug. 5. Give journal entries for Aug.10^th and 15^th.

Question

Reid Art Supply Company uses a perpetual inventory system. The company had the following transactions during August, 2015:
Aug. 5: Purchased

\$ 2,900

of merchandise on account. Freight and credit terms were

\mathrm { FOB }

shipping point,

3 / 15 , \mathrm { n } / 60

.
Aug. 9: Paid transportation costs of

\$ 440

for the Aug. 5 purchase.
Aug. 10: Returned

\$ 600

of defective merchandise that had been purchased on Aug.5.
Aug. 15: Paid for the merchandise purchased on Aug. 5. Give journal entries for Aug.10^th and 15^th.

Quizplus · Accepted Answer

The Answer of Reid Art Supply Company uses a perpetual inventory system. The company had the following transactions during August, 2015: Aug. 5: Purchased $\$ 2,900$ of merchandise on account. Freight and credit terms were $\mathrm { FOB }$ shipping point, $3 / 15 , \mathrm { n } / 60$. Aug. 9: Paid transportation costs of $\$ 440$ for the Aug. 5 purchase. Aug. 10: Returned $\$ 600$ of defective merchandise that had been purchased on Aug.5. Aug. 15: Paid for the merchandise purchased on Aug. 5. Give journal entries for Aug.10^th and 15^th.

Reid Art Supply Company Uses a Perpetual Inventory System $2,900\$ 2,900$2,900

Reid Art Supply Company Uses a Perpetual Inventory System $\$ 2,900$