Question
A retailer uses a perpetual inventory system. During March, the following transactions occurred. 1. The retailer purchased $6,600 of inventory from a supplier on March
A retailer uses a perpetual inventory system. During March, the following transactions occurred.
1. The retailer purchased $6,600 of inventory from a supplier on March 1, terms 2/10, n/30, FOB Shipping Point.
2. The correct party, on March 2, paid $250 in freight charges for delivery of the March 1 purchase.
3. On March 4, the retailer sold merchandise on credit to a customer for $1,500, terms 1/10, n/30, FOB Shipping Point. The cost of the inventory sold was $750.
4. The correct business on March 5 paid $160 in freight charges for delivery of the March 4 sale.
5. On March 6, the retailer returned $200 of the inventory purchased on March 1 to its supplier.
6. The March 4 customer returned $300 of goods sold on March 7 to the retailer. The cost of the inventory returned was $150. The stock was undamaged and returned to inventory.
7. On March 10, the retailer paid for the inventory purchased on March 1.
8. The retailer received payment on March 15 for the sale that took place on March 4.
Instructions: Prepare the retailers journal entries for the above transactions
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