Record the following transactions for a perpetual inventory system in general jo

Question

Record the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, $1,815.24. The cost of merchandise was $1,320. b. Issued credit memorandum no. 56 to Southridge Manufacturing, Inc., for merchandise returned, $622. The cost of the merchandise was $485. c. Bought merchandise on account from Michal's Inc., invoice no. 1685, $850; terms 1/10, n/30; dated April 14; FOB Dallas, freight prepaid and added to the invoice, $65.00 (total $915). d. Received credit memorandum no. 219 from Michal's Inc. for merchandise returned, $210.

Explanation / Answer

d accounts payable $210

Purchases $210

item Account description Debit Credit a Accounts receivable $1,815.24 cost of goods sold $1,320 revenue(Sales) $1,815.24 Inventory $1,320 b Sales returns $622 Inventory $485 Accounts receivable $622 cost of goods sold $485 c Purchases (Inventory) $915 accounts payable $850 cash $65

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