Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. Following are the merchandising transactions for Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,400 on terms of 2/5, n/30, FOB shipping point,
6. Following are the merchandising transactions for Dollar Store.
Nov. | 1 | Dollar Store purchases merchandise for $2,400 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 returns $100 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. | |||
10 | Dollar Store pays $120 cash for transportation costs for the November 1 purchase. | |||
13 | Dollar Store sells merchandise for $2,592 with terms n/30. The cost of the merchandise is $1,296. | |||
16 | Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $285 and cost $143 the items were 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started