Exercise 4-12 (Static) Recording purchases, sales, returns, and shipping LO P1, P2

Following are the merchandising transactions of Dollar Store.

Nov.1Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.5Dollar Store pays cash for the November 1 purchase.7Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.10Dollar Store pays $90 cash for transportation costs for the November 1 purchase.13Dollar Store sells merchandise for $1,600 with terms n/30. The cost of the merchandise is $800.16Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $160 and cost $80 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.