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Purchase-Related Transactions
Journalize entries for the following related transactions of Manville Heating & Air Company:
a. Purchased $32,000 of merchandise from Wright Co. on account, terms 2/10, 1/30.
Merchandise Inventory
31,360
Merchandise Inventory v
31,360
Payable-Wright Co.
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a. A purchase increases inventory and the amount that is owed on account.
and the
b. Paid the amount owed on the invoice within the
the discount period.
Accounts Payable-Wright Co.
18/5
Cash
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b. A payment of the
the discount, and records
discount period reduces Accounts
Payable for the amo
the amount of the invoice, reduces Cash for the amount of the invoic
a reduction in Merchandise Inventory.
c. Discovered that $6,400 of the merchandise purchased in (a) was defective and returned items, receiving credit.
Accounts Payable-Wright Co. 24.960 x

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

advanced placement tests

answer; i believe that the correct answer is (d); the business benefits because owners can share responsibilities;

the first one $24,630