Nov. 1 Dollar Store purchases ndise for $2,000 on terms of 2/5, n/30, FOB shippi

Question

Nov. 1 Dollar Store purchases ndise for $2,000 on terms of 2/5, n/30, FOB shipping point, invoice dated K 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on 5, for a cash refund 10 Dollar Store pays $100 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $2,160 with terms n/30. The cost of the merchandise is $1,080. 16 ise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $265 and cost $133; the items vere not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method. View transaction list Journal entry worksheet 5 6 7 Dollar Store purchases merchandise for $2,000 on terms of 2/5, nv30, FOB shipping point, invoice dated November 1. Date General Journal Debit Credit 01 Clear entry

Explanation / Answer

Date

General Journal

Debit

Credit

Nov-01

Merchandise Inventory

$ 2,000.00

Accounts payable

$ 2,000.00

Nov-05

Accounts payable

$ 20,000.00

Merchandise Inventory ($2,000*2%)

$ 40.00

Cash

$ 1,960.00

Nov-07

Cash

$ 196.00

Merchandise inventory ($200*98%)

$ 196.00

Nov-10

Merchandise Inventory

$ 100.00

Cash

$ 100.00

Nov-13

Accounts receivables

$ 2,160.00

Sales

$ 2,160.00

Cost of goods sold

$ 1,080.00

Merchandise Inventory

$ 1,080.00

Nov-16

Sales retuns

$ 265.00

Accounts receivables

$ 265.00

Merchandise Inventory

$ 133.00

Cost of goods sold

$ 133.00

Date

General Journal

Debit

Credit

Nov-01

Merchandise Inventory

$ 2,000.00

Accounts payable

$ 2,000.00

Nov-05

Accounts payable

$ 20,000.00

Merchandise Inventory ($2,000*2%)

$ 40.00

Cash

$ 1,960.00

Nov-07

Cash

$ 196.00

Merchandise inventory ($200*98%)

$ 196.00

Nov-10

Merchandise Inventory

$ 100.00

Cash

$ 100.00

Nov-13

Accounts receivables

$ 2,160.00

Sales

$ 2,160.00

Cost of goods sold

$ 1,080.00

Merchandise Inventory

$ 1,080.00

Nov-16

Sales retuns

$ 265.00

Accounts receivables

$ 265.00

Merchandise Inventory

$ 133.00

Cost of goods sold

$ 133.00

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