Question
9. Highland, Inc. entered into the transactions listed below. In the journal provided, prepare Highland's entries, assuming use of the perpetual inventory system. Omit explanations.
9. Highland, Inc. entered into the transactions listed below. In the journal provided, prepare Highland's entries, assuming use of the perpetual inventory system. Omit explanations.
Mar. | 2 | Purchased $450 of merchandise on credit, terms n/30. |
| 6 | Returned $75 of the items purchased on March 2. |
| 8 | Paid freight charges of $25 on the items purchased March 2. |
| 16 | Sold merchandise on credit for $600, terms n/15. The merchandise had a cost in inventory of $375. |
| 17 | Of the merchandise sold on March 16, $50 of it was returned. The items had cost to Highland of $15. |
| 25 | Received payment in full from the customer of March 16. |
| 31 | Paid for the merchandise purchased on March 2. |
ANS:
General Journal | Page 1 | |||||
Date | Description | Post. Ref. | Debit | Credit | ||
Mar. | 2 | Merchandise Inventory |
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| Accounts Payable |
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| 6 | Accounts Payable |
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| Merchandise Inventory |
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| 8 | Freight-In |
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| Cash |
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| 16 | Accounts Receivable |
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| Sales |
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| 16 | Cost of Goods Sold |
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| Merchandise Inventory |
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| 17 | Sales Returns and Allowances |
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| Accounts Receivable |
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| 17 | Merchandise Inventory |
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| Cost of Goods Sold |
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| 25 | Cash |
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| Accounts Receivable |
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| 31 | Accounts Payable |
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| Cash |
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