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Information related to Harwick Co. is presented below. . On April 5, purchased merchandise from Botham Company for $44,600, terms 2/10, net/30, FOB shipping point. 2. 3. 4. 5. On April 6, paid freight costs of $890 on merchandise purchased from Botham. On April 7, purchased equipment on account for $44,400. On April 8, returned damaged merchandise to Botham Company and was granted a $5,700 credit for returned merchandise. On April 15, paid the amount due to Botham Company in full. Prepare the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system. (Credit account ti
Expert Answer
| Date | Accounting titles & Explanations | Debit | Credit |
| 5-Apr | Merchandise Inventory | 44,600 | |
| Accounts payable | 44,600 | ||
| ( To record the purchase of merchandise inventory on credit) | |||
| 6-Apr | Merchandise Inventory | 890 | |
| cash | 890 | ||
| ( To record the payment of Freight charges on merchandise inventory) | |||
| 7-Apr | Equipment | 44,400 | |
| Accounts payable | 44,400 | ||
| (To record the purchase of equipment on credit) | |||
| 8-Apr | Accounts payable | 5,700 | |
| Merchandise Inventory | 5,700 | ||
| ( To record the purchase returns) | |||
| 15-Apr | Accounts payable (44600-5700) | 38900 | |
| inventory (38900*2%) | 778 | ||
| Cash | 38122 | ||
| ( To record the payment of purchases made April 5 and record the discount given) |
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