Spice Company Completed the Following Transactions:
May 10 Prepared $\$ 301$

question 56

Essay

Spice Company completed the following transactions:
May 10 Prepared voucher $\$ 301$ for purchase of merchandise for $\$ 4,000$ from Sugar Company
12 Returned $\$ 750$ of the merchandise purchased from Sugar because of poor quality. Cancelled voucher $\$ 301$ and replaced it with voucher $\$ 305$ .
Required: Prepare journal entries to record the above transactions.Assume Spice uses the gross method for recording purchases.Omit explanations.Spice uses the periodic method.

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Definitions:

Marshall Plan

A U.S.-initiated program providing massive financial aid to Western Europe after World War II to rebuild economies and prevent the spread of communism.

Communism

A political and economic ideology that advocates for a classless society in which all property is publicly owned, and each person works and is paid according to their abilities and needs.

European Economic Community

An economic organization that aimed to bring about economic integration among its member states, a precursor to the European Union.

Trade Barriers

Measures implemented by countries to regulate or restrict trade with other countries, including tariffs, quotas, and import bans, typically aimed at protecting domestic industries.