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Create Journal Entries for the following. Chapter 5 problem Homework Webster Company was established on July 1. Its sales terms are 2/10, n/30. Credit terms

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Chapter 5 problem Homework Webster Company was established on July 1". Its sales terms are 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions are given below. Unless noted, all transactions are on account and involve merchandise for resale. Webster uses the perpetual inventory system. Jul i Jul 1 Jul 2 Jul 3 Jul 5 Jul S Jul8 Company received $40,000 cash in exchange for common stock Purchased goods from Dawson, Inc., $2,500; terms 1/10, /30. FOB shipping point. Purchased goods from Penn Company, $4,500; terms 2/10, 1/30. FOB destination Paid freight on shipment from Dawson, $300. Sold merchandise to Ward, Inc. $1,400 ($1,100 cost). Terms FOB destination. Paid $90 freight on July 5 shipment to Ward, Inc. Returned $500 worth of goods purchased July 1" from Dawson, Inc. because they were defective. Received $200 worth of merchandise ($150 cost) returned from Ward, Inc. Items placed back into Inventory. Jul 9 Jul 10 Paid Dawson, Inc. the amount due. Jul 10 Purchase merchandise from Dorn Company for $2,600 terms 2/10, n/30. FOB shipping point. Jul 11 Paid freight on shipment from Dorn Company, $150. Jul 14 Received the amount due from Ward, Inc. Jul 15 Sold merchandise to Colby Corporation, $3,200 ($2,400 cost). Jul 16 Mailed a check to Penn Company for the amount due on the July 2nd invoice. Jul 18 Received an allowance of $200 from Dorn Company for slightly defective merchandise purchased on July 10h Jul 19 Paid Dorn Company the amount due. Jul 24 Received the amount due from Colby Corporation

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