John\'s Specialty Store uses a perpetual inventory system. The following are som

Question

John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: 1. John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John's account was credited by the supplier. 3. Merchandise costing $2,800 was sold for $5,200 in cash Required Prepare the necessary journal entries to record these transactions. (If no entry is required for a 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 $5,000. Note: Enter debits before credits. Transaction General Journal DebitCredit

Explanation / Answer

1 Inventory 5000        Accounts Payable 5000 1 Inventory 300         Cash 300 2 Accounts Payable 600        Inventory 600 3 Cash 5200        Sales Revenue 5200 3 Cost of Goods Sold 2800        Inventory 2800

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