So my question is what the answer to the May 24th Accounting problem. I am including may 21st problem because the may 24th problem is based off the may 21st order. I did a check and it says the may 21st problem is correct and the accounts are correct on the 24th, but my numbers entered to may 24th is wrong ($5000). Please help.



May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.

Merchandise Inventory for 87,120
Accounts Payable-Osterman Co. for 87,120


May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.

Accounts Payable-Osterman Co. for 5,000
Merchandise Inventory for 5,000