Record the following transactions for Sparky\'s Pet Shop, assume Sparky\'s uses

ID: 2372690 • Letter: R

Question

Record the following transactions for Sparky's Pet Shop, assume Sparky's uses a perpetual inventory system.

August 1- Purchased $6,000 of merchandise on account, terms 2/10, n/30.

August 3- Returned $1,500 of merchandise purchased on August 1 due to defects.

August 7- Recorded cash sales for the first week of August $9,750; cost of the merchandise was $4000.

August 10- Sale on account made to a local breeder for $500, terms 1/10 net 30; cost of merchandise was $200

August 11- Paid for the merchandise purchased on August 1, less return.

August 20- Received payment from sale of August 10. The customer took the discount.

...........................................................................debit..........................credit

aug1) Merchandise 6000 0

account payable 0 6000

aug 3) merchendise 0 1500

account payable 1500 0

aug 7) cash 9750 0

merchandise 0 4000

revenue 0 5750

aug10) account receivable 500 0

merchandise 0 200

revenue 0 300

aug 11) account payable 4500 0

cash 0 4500

aug 20) account receivable 0 500

cash 500 0

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