Student Name: Austin Maurer

5 Digit Identification Number: 98391

Date: 2/2/2017
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Austin Maurer Company is a merchandiser that buys and resells furniture. The Company uses the periodic inventory system and occasiona
receives defective inventory that is either returned or subject to a purchase price adjustment. All purchases are on terms of 2/10,n/30.

Prepare summary journal entries for the following purchase related transactions using the "gross" method. Account titles and amounts a
selected from the choices found in the drop down pick lists associated with each entry. A check mark will appear beside a correct en

(a) Austin Maurer Company purchased tables and chairs for $2,809,688 on account.

GENERAL JOURNAL  

Date Accounts Debit

Purchases ü 2,809,688.00

Accounts Payable ü
Purchased inventory on account, terms 2/10,n/30

During the current year merchandise costing $234,141 was returned to suppliers for
(b)
full credit on account.

GENERAL JOURNAL  

Date Accounts Debit

Accounts Payable ü 234,141.00

Purchase Returns & Allowances ü

To recognize return of inventory to suppliers
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Selected inventory was found to have minor defects for which suppliers granted price
(c)
reductions of $140,484.

GENERAL JOURNAL  

Date Accounts Debit

Accounts Payable ü 140,484.00

Purchase Returns & Allowances ü

To recognize price reductions for purchases of defective inventory

Paid suppliers for gross purchases of $2,341,407 on which the full discount was
(d)
received.

GENERAL JOURNAL  

Date Accounts Debit

Accounts Payable ü 2,341,407.00

Purchase Discounts ü
Cash ü
Paid outstanding payables of $2,341,407 on which a discount of $46,828 was
received (2% X $2,341,407).

(e) Paid suppliers for gross purchases of $117,070 on which the discount was missed.

GENERAL JOURNAL  

Date Accounts Debit

Dec. 31 Accounts Payable ü 117,070.00

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Cash ü
Paid outstanding payables of $117,070 on which no discount was received.
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ventory system and occasionally

e on terms of 2/10,n/30.

Account titles and amounts are to be

will appear beside a correct entry.

Credit

2,809,688.00

Credit

234,141.00
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Credit

140,484.00

Credit

46,828.00

2,294,579.00

Credit
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117,070.00
 I-02.04

Austin Maurer Company is a merchandiser that buys and resells furniture. The Company uses the periodic inventory system and occasiona
receives defective inventory that is either returned or subject to a purchase price adjustment. All purchases are on terms of 2/10,n/30.

Prepare summary journal entries for the following purchase related transactions using the "net" method. Account titles and amounts are to b
from the choices found in the drop down pick lists associated with each entry. A check mark will appear beside a correct entry.

(a) Austin Maurer Company purchased tables and chairs having a gross cost of $2,809,688 on account.

GENERAL JOURNAL  

Date Accounts Debit

Purchases ü 2,753,494.24

Accounts Payable ü
Purchased inventory on account, terms 2/10,n/30

During the current year merchandise with a gross cost of $229,458 was returned to
(b)
suppliers for full credit on account.

GENERAL JOURNAL  

Date Accounts Debit

Accounts Payable ü 224,868.84

Purchase Returns & Allowances ü

To recognize return of inventory to suppliers
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Selected inventory was found to have minor defects for which suppliers granted gross
(c)
price reductions of $140,484.

GENERAL JOURNAL  

Date Accounts Debit

Accounts Payable ü 137,674.32

Purchase Returns & Allowances ü

To recognize price reductions for purchases of defective inventory

(d) Paid suppliers for gross purchases of $114,729 on which the discount was missed.

GENERAL JOURNAL  

Date Accounts Debit

Accounts Payable ü 112,434.42

Purchase Discounts Lost ü 2,294.58

Cash ü
Paid outstanding payables of $114,729 on which a discount of $2,294.58 was lost
(2% X $114,729).

Paid suppliers for gross purchases of $2,294,579 on which the full discount was
(e)
taken.

GENERAL JOURNAL  

Date Accounts Debit

Dec. 31 Accounts Payable ü 2,248,687.42

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Cash ü
Paid outstanding payables of $2,294,579 on which the full discount was received.
 I-02.04

ventory system and occasionally

e on terms of 2/10,n/30.

unt titles and amounts are to be selected

appear beside a correct entry.

Credit

2,753,494.24

Credit

224,868.84
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Credit

137,674.32

Credit

114,729.00

Credit
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2,248,687.42