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Accounting Question?

Hi,
I am working on some homework and I am having trouble figuring out how to log the journal entries for this problem. Please Help?

January 8th, Bob purchases $5,000,000 of specialty T-Shirts from The T-Shirt Company. The invoice terms are 5/30, n/60. Bob pays $100,000 cash for transportation cost of the inventory. Upon unpacking the inventory, On January 9th, Bob notices that some of the T-Shirts are defective. He returns $350,000 of the merchandise to the vendor and receives a full credit.

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2 Answers

Date      Account                                                            Debit               Credit
 
Jan 8     T-Shirt Inventory                                              5,100,000
                        Cash                                                                                     100,000
                        T-Shirt Company Payable (5/30, n/60)                          5,000,000
(To record receipt of inventory and transportation costs)
 
Jan 9                 T-Shirt Inventory                                                               350,000
             T-Shirt Company Payable                                     350,000
(To record returned defective merchandise)
 
 

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