Exercise 8.12 recording purchases with purchase returns and purchases discounts. lo 8-7 record the following transactions of j. min designs in a general journal. the company uses the perpetual inventory system. date transactions 2019 april 1 purchased merchandise on credit from o’rourke fabricators, invoice 885, $3,850, terms 2/10, n/30; freight of $105 prepaid by o’rourke fabricators and added to the invoice (total invoice amount, $3,955). 9 paid amount due to o’rourke fabricators for the purchase of april 1, less the 2 percent discount, check 457. 15 purchased merchandise on credit from kroll company, invoice 145, $2,100, terms 1/10, n/30; freight of $160 prepaid by kroll and added to the invoice. 17 returned damaged merchandise purchased on april 15 from kroll company; received credit memorandum 332 for $135. 24 paid the amount due to kroll company for the purchase of april 15, less the return on april 17, taking the 1 percent discount, check 470. record these transactions in a general journal. (round final answers to the nearest whole dollar value.)

The Journal entries are as follows:

(i) On Apr-01,

Purchases A/c        Dr. $3,850

Freight - In  A/c       Dr. $105

To Accounts Payable - O’Rourke Fabricators                $3,955

(To record Purchased merchandise on account,Invoice 885, 3/10, n/30)

(ii) On Apr-09,

Accounts Payable - O’Rourke Fabricators A/c  Dr. $3,955

To Purchase discount (3,850 x 2%)                                                 $77

To Cash                                                                                              $3,878

(To Record Paid amount due on Invoice 885, Check 457)

(iii) On Apr-15,

Purchases A/c        Dr. $2,100

Freight - In  A/c       Dr. $160

To Accounts Payable - Kroll Company                $2,260

(To record purchased merchandise on account,Invoice 885, 3/10, n/30)

(iv) On Apr-17,

Accounts Payable - Kroll Company A/c    Dr. $135

To Purchases Returns and Allowances                    $135

(To record received Credit Memo 332 for return of damaged merchandise)

(v) On Apr-24,

Accounts Payable - Kroll Company A/c    Dr. $2,125

To Purchase discount [(2,100 - 135 ) x 1%]                                 $19.65

To cash                                                                                         $2,105.35                                      

(To record paid amount due on Invoice 145, Check 470)