Question

view the transactions
requirements
1 journalize the purchase transactions. explanations are not required
2 in the final analysis, how much did the inventory cost kc toys?

requirement 1. journalize the purchase transactions. explanations are not required. (assume the company uses a perpetual inventory - system. record debits first, then credits. exclude explanations from journal entries.)
aug 7 kc toys purchased $189,300 worth of megoblock toys on account with credit terms of 2/10, n/45.
date accounts debit credit
aug 7 merchandise inventory 189,300
accounts payable - megoblock 189,300

aug 12 kc toys returned $10,850 of the merchandise to megoblock due to damage during shipment.
date accounts debit credit

Explanation:

Step1: Record return transaction

Debit Accounts Payable - MegoBlock $10,850$; Credit Merchandise Inventory $10,850$.

Step2: Calculate net inventory cost

The initial inventory purchase was $189,300$. After the return of $10,850$, the net cost is $189300 - 10850$.
$189300-10850 = 178450$

Answer:

$178,450$