Accounting Inventory Mad Libs

1. On the 1^st day of _____November___________, ______Fafa________s shoe store ordered inventory. They purchased 100 pairs of tennis shoes at $25 each on account, terms 3/15, n/30.

2. On the 3^rd of the month, they returned _10_____ pairs that were the wrong style for credit.

3. On the __12th__ of the month, they paid for the purchase. (note discount period)

4. The first week, the store sold 12 pairs for $__50___ each in cash sales.

5. On the 10^th, a sale of 30 pairs of shoes for $50 each was made to the _____Bear____________s basketball teams on account, terms 2/10, n/30.

6. __3__ pairs of shoes were returned from a previous month sale that had a sales price of $50 per pair and a cost of $25 per pair.

7. The school paid for the purchase on the ___15____th of the month. Record the receipt of cash. (note discount period)

8. ____________fafa_______s purchased an additional 50 pairs of tennis shoes on the 20^th from _________Barks lawn service__________ on account at a cost of $25 per pair with terms 2/10, net 30.

9. On the 22^nd, they paid $___50__ cash for freight in on the latest purchase.

10. The company recorded cash sales for an additional ___20___ pairs of shoes for $65 each on the 24^th of the month.

11. On the last day of the month, the company estimated sales returns for their sales. They estimate that 2% of sales will be returned. (Hint: use total sales from above)

Prepare the appropriate journal entries for each transaction under a perpetual inventory system.