Prepare journal entries to record the transactions for ace

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Reference no: EM131914877

Problem

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:

June 3 Purchased goods for $5,900 from Diamond Inc. with terms 3/10, n/30.

5 Returned goods costing $2,000 to Diamond Inc. for full credit.

6 Purchased goods from Club Corp. for $1,900 with terms 3/10, n/30.

11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full.

Required: Prepare journal entries to record the transactions, assuming Ace uses a perpetual inventory system.

Reference no: EM131914877

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