Question Details

Prepare the journal entries that Boggs Company 


(a) Boden Company purchased merchandise on account from Office Suppliers for $86,000,
with terms of 2/10, n/30. During the discount period, Boden returned some merchandise
and paid $78,400 as payment in full. Boden uses a perpetual inventory system. Prepare the
journal entries that Boden Company made to record:
(1) the purchase of merchandise.
(2) the return of merchandise.
(3) the payment on account.
(b) Boggs Company sold merchandise to Wilsey Company on account for $73,000 with credit
terms of ?/10, n/30. The cost of the merchandise sold was $43,800. During the discount
period, Wilsey Company returned $3,000 of merchandise and paid its account in full (minus
the discount) by remitting $69,300 in cash. Both companies use a perpetual inventory
system. Prepare the journal entries that Boggs Company made to record:
(1) the sale of merchandise.
(2) the return of merchandise.
(3) the collection on account.



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