Award: 2.50 points Exercise 4-9 Recording purchases, sales, returns, and shippin

Question

Award: 2.50 points Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions for Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,700 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and retums $150 of defective merchandise purchased on November 1, and paid for on Novembe 5, for a cash refund. 10 Dolar Store pays $135 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $2,916 with terms n/30. The cost of the merchandise is $1,458. 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $300 an cost $150; the items were not damaged and were returned to inventory. Jounalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system arnd the gross method. iew transaction list Journal entry worksheet Dollar Store purchases merchandise for $2,700 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. Note: Enter debits before credits Date General Journal Debit Credit Nov 01 View general journal

Explanation / Answer

Perpetual inventory :

Date Accounts title Dr Cr Nov 1 Merchandise inventory 2700 To Accounts payable 2700 5 Accounts payable 2700 To cash 2646 To Merchandise inventory [2700*2%] 54 7 Cash [150 * 0.98] 147 To Merchandise inventory 147 10 Merchandise inventory 135 To cash 135 13 Accounts receivable 2916 To sale 2916 cost of goods sold 1458 To Merchandise inventory 1458 16 sales return and allowances 300 To Accounts receivable 300 Merchandise inventory 150 To cost of goods sold 150

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.