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Accounting Question?

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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Casey T. | Professional and Teaching Experience in Accounting, Tax, and AuditingProfessional and Teaching Experience in ...
4.8 4.8 (5 lesson ratings) (5)
First step - You need to know whether you are going to use the periodic or perpetual method to record the transactions. 
Dr. Vicki B. | Doc. B: Accounting, Business, Writing, Research Tutor/TrainerDoc. B: Accounting, Business, Writing, R...
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)