Reference no: EM131894254
Problem - NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:
Date Transactions 2019
June 1 Issued Check 101 to purchase merchandise, $4,000.
June 3 Purchased merchandise for $1,450 from BioCenter Inc., Invoice 606; terms 2/10, n/30.
June 5 Purchased merchandise for $5,350, plus a freight charge of $100, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
June 9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
June 10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $250 that was returned; the goods were purchased on Invoice 1011, dated June 5.
June 11 Purchased merchandise for $1,630 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
June 14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
June 15 Purchased merchandise with a list price of $8,700 and trade discounts of 25 percent and 20 percent from Park Research, Invoice 1029, terms n/30.
June 20 Issued Check 104 to purchase merchandise, $2,500.
June 25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $230.
June 30 Purchased merchandise for $2,700, plus a freight charge of $80, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required: Journalize the transactions in a general journal.
Analyze: What was the amount of trade discounts received on the June 15 purchase from Park Research?