Journalize the Following Purchase Transactions for Main Street Office Supplies

question 181

Essay

Journalize the following purchase transactions for Main Street Office Supplies using the periodic inventory system. Explanations are not required.
$$\begin{array} { | l | l | } \hline \text { May } 12 & \begin{array} { l } \text { Main Street buys } \$ 167,500 \text { worth of merchandise } \\\text { inventory on account with credit terms of } 2 / 10 , \mathrm { n } / 30 .\end{array} \\\hline & \text { Main Street returns } \$ 18,600 \text { of the merchandise to the } \\\text { May } 16 & \text { vendor due to damage during shipment. } \\\hline \text { May 21 } & \text { Main Street pays the amount due. } \\\hline\end{array}$$

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Definitions:

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.