John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month
Question:
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.
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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