Question

Click Computers has the following transactions in July related to the purchase of merchandise inventory.

July 1 Purchase of \(20,500 worth of computers on account, terms of 2/10, n/30.

3 Return of \)4,000 of the computers to the vendor.

9 Payment made on the account.

Journalize the purchase transactions for Click Computers assuming the company uses the perpetual inventory system.

Short answer

The total debit and credit for the journal are $41,000.

Step-by-step solution

Meaning of Perpetual Inventory System

The perpetual inventory system immediately records the sale and purchase of inventoriesthrough an electronic medium. This system requires computers and knowledge to record inventory-related transactions.

Preparation of journal entries

Date	Accounts and Explanation	Debit ($)	Credit ($)
July 1	Inventory	20,500
	Accounts payable		20,500
	(To record the purchase of computers)
July 3	Accounts payable	4,000
	Inventory		4,000
	(To record the return of goods)
July 9	Accounts payable	16,500
	Bank		16,170
	Inventory		330
	(To record the payment within the discount period)