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This information relates to Sage Hill Co.
1. On April 5, purchased merchandise from Oriole Company for $27,900, terms 4/10, n/30.
2. On April 6, paid freight costs of $520 on merchandise purchased from Oriole.
3. On April 7, purchased equipment on account for $32,700.
4. On April 8, returned $4,800 of April 5 merchandise to Oriole Company.
5. On April 15, paid the amount due to Oriole Company in full.
Prepare the journal entries to record the transactions listed above on Cullumber Co.’s books. Cullumber Co. uses a perpetual inventory system.

Sagot :

anthougo

The preparation of the journal entries to record the transactions of Sage Hill Co. are as follows:

Journal Entries:

April 5 Debit Inventory $27,900

Credit Accounts Payable (Oriole Company) $27,900

Credit terms 4/10, n/30.

April 6, Debit Freight-in $520

Credit Cash $520

April 7, Debit Equipment $32,700

Credit Accounts Payable $32,700

April 8, Debit Accounts Payable (Oriole Company) $4,800

Credit Inventory $4,800

April 15, Debit Accounts Payable (Oriole Company) $23,100

Credit Cash $22,176

Credit Cash Discounts $924

Transaction Analysis:

April 5 Inventory $27,900 Accounts Payable (Oriole Company) $27,900

Credit terms 4/10, n/30.

April 6, Freight-in $520 Cash $520

April 7, Equipment $32,700 Accounts Payable $32,700

April 8, Accounts Payable (Oriole Company) $4,800 Inventory $4,800

April 15, Accounts Payable (Oriole Company) $23,100 Cash $22,176 Cash Discounts $924

Learn more about recording transactions at https://brainly.com/question/24835236

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