2. Record the freight charges of $550. 3. Record the return of merchandise costi

Question

2. Record the freight charges of $550.

3. Record the return of merchandise costing $850.

4. Record the sale of merchandise for $5,700 in cash.

5. Record the cost of good sold for $3,050

John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2016: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for S5,700 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required fora transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 4 Record the merchandise purchased on account for $5,500. Note: Enter debits before credits. ransaction General Journal Debit Credit 01

Explanation / Answer

1 Inventory 5500        Accounts Payable 5500 Inventory 550        Cash 550 2 Accounts Payable 850         Inventory 850 3 Cash 5700      Sales Revenue 5700 Cost of goods sold 3050         Inventory 3050

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