1. On November 1, CSI Systems purchases merchandise for $2,200 on credit with te
ID: 2357451 • Letter: 1
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1. On November 1, CSI Systems purchases merchandise for $2,200 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1. 2. On November 5, CSI Systems pays cash for the November 1 purchase. 3. On November 7, CSI Systems discovers and returns $105 of defective merchandise purchased on November 1 for a cash refund. 4. On November 10, CSI Systems pays $110 cash for transportation costs with the November 1 purchase. 5. On November 13, CSI Systems sells merchandise for $2,376 on credit. The cost of the merchandise is $1,188. 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $215 and cost $108. Journalize the above merchandising transactions for CSI Systems assuming it uses a perpetual inventory system. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Date General Journal Debit Credit Nov. 1 Nov. 5 Nov. 7 Nov. 10 Nov. 13 Nov. 16Explanation / Answer
SIMILAR PROBLEM inventory system and (b) a perpetual inventory system. 1. On November 1, CSI Systems purchases merchandise for $1,400 on credit with terms of 25, n30, FOB shipping point; invoice dated November 1. 2. On November 5, CSI Systems pays cash for the November 1 purchase. 3. On November 7, CSI Systems discovers and returns $100 of defective merchandise purchased on November 1 for a cash refund. 4. On November 10, CSI Systems pays $80 cash for transportation costs with the November 1 purchase. 5. On November 13, CSI Systems sells merchandise for $1,500 on credit. The cost of the merchandise is $750. 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $200 and cost $100. 4 years ago Report Abuse ANSWER (a) a periodic inventory system 1. On November 1, CSI Systems purchases merchandise for $1,400 on credit with terms of 2_5, n_30, FOB shipping point; invoice dated November 1 Dr Purchases $1,400 Cr Accounts payable $1,400 2. On November 5, CSI Systems pays cash for the November 1 purchase Dr Accounts payable $1,400 Cr Purchase discounts $28 Cr Cash $1,372 3. On November 7, CSI Systems discovers and returns $100 of defective merchandise purchased on November 1 for a cash refund Dr Cash $98 Dr Purchase discounts $2 Cr Purchases $100 4. On November 10, CSI Systems pays $80 cash for transportation costs with the November 1 purchase Dr Freight-in $80 Cr Cash $80 5. On November 13, CSI Systems sells merchandise for $1,500 on credit. The cost of the merchandise is $750 Dr Accounts receivable $1,500 Cr Sales $1,500 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $200 and cost $100 Dr Sales returns & allowances $200 Cr Accounts receivable $200 (b) a perpetual inventory system 1. On November 1, CSI Systems purchases merchandise for $1,400 on credit with terms of 2_5, n_30, FOB shipping point; invoice dated November 1 Dr Merchandise inventory $1,400 Cr Accounts payable $1,400 2. On November 5, CSI Systems pays cash for the November 1 purchase Dr Accounts payable $1,400 Cr Merchandise inventory $28 Cr Cash $1,372 3. On November 7, CSI Systems discovers and returns $100 of defective merchandise purchased on November 1 for a cash refund Dr Cash $98 Cr Merchandise inventory $100 4. On November 10, CSI Systems pays $80 cash for transportation costs with the November 1 purchase Dr Merchandise inventory $80 Cr Cash $80 5. On November 13, CSI Systems sells merchandise for $1,500 on credit. The cost of the merchandise is $750 Dr Accounts receivable $1,500 Cr Sales $1,500 Dr COGS $750 Cr Merchandise inventory $750 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $200 and cost $100 Dr Sales returns & allowances $200 Cr Accounts receivable $200 Dr Merchandise inventory $100 Cr COGS $100
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