McNally Play Company Engaged in the Following Transactions During the Month

question 119

Essay

McNally Play Company engaged in the following transactions during the month of August:
August 4 Purchased $3,000 of merchandise on account, terms 1/10, n/30. McNally records purchases using the gross method.
5 Returned $400 of the merchandise purchased on Aug. 4 because it was defective.
6 Purchased a machine for $5,000. Paid 20% down and signed an 8%, two-month note for the balance.
8 Purchased $900 of merchandise and paid $940, which included freight.
13 Paid the balance due on the purchase of Aug. 4.
Required:
Record these transactions in a general journal, assuming McNally Play uses a periodic inventory system.