Grooving Giving Gift Shop uses a perpetual inventory system. Joumalize the follo

Question

Grooving Giving Gift Shop uses a perpetual inventory system. Joumalize the following transactions for Grooving Giving Gift Shop. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount. Round all numbers to the nearest whole dollar.) A (Click the icon to view the transactions.) Feb. 3: Purchased $3,000 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point. Date Accounts Debit Credit i More Info Feb. 3 Feb. Fob. 7: Returned $800 of defective merchandise purchased on February 3. Date Accounts Dobit Credit 3 Purchased $3,000 of merchandise inventory on account under terms 3/10, VEOM and FOB shipping point. 7 Returned $800 of defective merchandise purchased on February 3. 9 Paid freight bill of $300 on February 3 purchase. 10 Sold merchandise inventory on account for $4,900. Payment terms were 3/15, n/30. These goods cost the company $2,450. 12 Paid amount owed on credit purchase of February 3, less the return and the discount. 28 Received cash from February 10 customer in full settlement of their debt. Feb. 7 Feb. 9: Paid freight bill of $300 on February 3 purchase. Print Done Date Accounts Debit Credit Feb. 9

Explanation / Answer

Date Accounts Debit Credit 3-Feb Merchandise iventory 3,000 Accounts payable 3,000 7-Feb Accounts payable 800 Merchandise inventory 800 9-Feb merchandise inventory 300 cash 300 10-Feb Accounts receivable 4,900 sales 4,900 cost of goods sold 2,450 merchandise inventory 2,450 12-Feb Accounts payable (3000-800) 2,200 Merchandise invenetory (2200*3%) 66 cash 2,134 26-Feb Cash 4,900 Accounts receivable 4,900

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