On February 28th, Gates Gems received merchandise they purchased on account from Diamonds Direct in the amount of $8,550. Some of the gems were delivered were different than what was ordered. Gates Gems decided they would keep the Gems if Diamonds Direct would give them a discount. Diamonds Direct offered a $1,500 discount and Gates Gems accepted. What is the journal entry to record this transaction? Debit Accounts Payable/Diamonds Direct, $1,500; credit Purchases Returns and Allowances $1,500 Debit Purchases, $8,550; credit Accounts Payable/Diamonds Direct, $8,550 Debit Purchases, $1,500; credit Accounts Payable/Diamonds Direct, $1,500 Debit Accounts Payable/Jewelry Wholesalers, $8,550; credit Purchases Returns and Allowances, $8,550
On February 28th, Gates Gems received merchandise they purchased on account from Diamonds Direct in the amount of $8,550. Some of the gems were delivered were different than what was ordered. Gates Gems decided they would keep the Gems if Diamonds Direct would give them a discount. Diamonds Direct offered a $1,500 discount and Gates Gems accepted. What is the journal entry to record this transaction? Debit Accounts Payable/Diamonds Direct, $1,500; credit Purchases Returns and Allowances $1,500 Debit Purchases, $8,550; credit Accounts Payable/Diamonds Direct, $8,550 Debit Purchases, $1,500; credit Accounts Payable/Diamonds Direct, $1,500 Debit Accounts Payable/Jewelry Wholesalers, $8,550; credit Purchases Returns and Allowances, $8,550
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 15E
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