Scruffy Brothers Supply Uses a Periodic Inventory System

question 189

Essay

Scruffy Brothers Supply uses a periodic inventory system. During May, the following transactions and events occurred.
May 13 Purchased 8 motors at a cost of $45 each from Charlie Company, terms 4/10, n/30. The motors cost Charlie Company $26 each.
May 16 Returned 1 defective motor to Charlie.
May 23 Paid Charlie Company in full. Round to nearest dollar.
Instructions
Journalize the May transactions for Scruffy Brothers. You may omit explanations.

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Definitions:

Frequent Transaction

Regular or repeated exchanges or dealings, especially in a financial context.

Imperfect Information Problem

The imperfect information problem occurs when one or more parties in a transaction have less information than the other(s), leading to decisions that may not be optimal.

High-quality Products

Goods that meet or exceed customer expectations in terms of durability, reliability, performance, and aesthetics.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce their availability to others.