Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
On April 1,Mathis Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was $2,800 and the cost of the merchandise sold was $2,450.
On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its warehouse.
On April 8, Mathis returned $1,000 of the merchandise. The cost of the merchandise returned was $700.
On April 10, Mathis paid Reece the balance due.
table.acc_main_table input[type=text]:focus { outline: 1px solid #79B5DE !important; border-color: transparent !important; }
Hide
a. Prepare the journal entry to record the April 1 purchase (ignore any freight charges) of merchandise by Mathis Company.