Reid Art Supply Company uses a perpetual inventory system. The company had the following transactions during August 2017:
Aug. 5: Purchased $2,900 of merchandise on account. Freight and credit terms were FOB shipping point, 3/15, 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 August 10 and 15.
What will be an ideal response
Journal entry on Aug. 10
Accounts Payable 600
Merchandise Inventory 600
Journal entry on Aug. 15
Accounts Payable 2,300
Merchandise Inventory 69
Cash 2,231
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