Journalize the following purchase transactions for Schaeffer Office Supplies using the periodic inventory system. Explanations are not required
May 12 Schaeffer buys $167,500 worth of merchandise inventory on account with credit terms of 2/10, n/30
May 16 Schaeffer returns $18,600 of the merchandise to the vendor due to damage during shipment.
May 21 Schaeffer pays the amount due.
What will be an ideal response
Date Accounts and Explanation Debit Credit
May 12 Purchases 167,500
Accounts Payable 167,500
May 16 Accounts Payable 18,600
Purchases Returns and Allowance 18,600
May 21 Accounts Payable ($167,500 - $18,600 ) 148,900
Cash ($148,900 âˆ' $2,978 ) 145,922
Purchase Discount ($148,900 x 0.02 ) 2,978
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