Problem:
This information relates to Sherper Co.
1) On April 5 purchased merchandise from Newport Co. for $22,000, terms 2/10, n/30
2) On April 6 paid freight costs of $900 on merchandise purchased from Newport Co.
3) On April 7 purchased equipment on account for 26,000.
4) On April 8 returned some of April 5 merchandise to newport Co. which costs 3,600.
5) On April 15 paid the amount due to Newport Co. in full.
A) Prepare the journal entries to record the transactions listed above on the books of Sherper Co. Sherper uses a perpetual inventory system.
B) Assume that Sherper Co. paid the balance due to Newport Co. on May 4 instead of April 15; prepare the journal entry to record this payment.