(APPENDIX 6A) RECORDING PURCHASE TRANSACTIONS

(APPENDIX 6A) RECORDING PURCHASE TRANSACTIONS

Refer to the information for Cornerstone Exercise 6-20. Assume that Mathis uses a periodic inventory system.
Exercise 6-20
RECORDING PURCHASE TRANSACTIONS
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
a. 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 $3,500 and the cost of the merchandise sold was $2,450.
b. On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its warehouse.
c. On April 8, Mathis returned $1,000 of the merchandise. The cost of the merchandise returned was $700.
d. On April 10, Mathis paid Reece the balance due.