Preparing a journal entry:
Accounts: Accounts Payable, Accounts Receivable, Cash, Cost of Goods Sold, Delivery Expense, Freight In, Merchandise Inventory, Purchase Discounts, Purchase Returns and Allowances, Purchases, Sales Discounts, Sales Returns and Allowances, Sales Revenue
REQUIREMENTS:
1. Journalize the purchase transactions. Explanations are not required.
2. In the final analysis, how much did the inventory cost Bedford?
September 2 Bedford buys $ 23,500 worth of inventory on account with credit terms of 1/15, n/30, FOB Shipping point
September 4 Bedford pays a $ 120 freight charge
September 8 Bedford returns $ 5,500 of the merchandise due to damage during shipment
September 14 Bedford paid the amount due, less return and discount