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Exercise 5 - 1 2 ( Algo ) Recording purchases, sales, returns, and shipping LO P 1 , P 2 Following are the merchandising transactions

Exercise 5-12(Algo) Recording purchases, sales, returns, and shipping LO P1, P2
Following are the merchandising transactions of Dollar Store.
November 1 Dollar Store purchases merchandise for $2,300 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
November 5 Dollar Store pays cash for the November 1 purchase.
November 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.
November 10 Dollar Store pays $115 cash for transportation costs for the November 1 purchase.
November 13 Dollar Store sells merchandise for $2,484 with terms n/30. The cost of the merchandise is $1,242.
November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $265 and cost $133 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.
1. Dollar Store purchases merchandise for $2,300 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
2. Dollar Store pays cash for the November 1 purchase.
3. Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.
4. Dollar Store pays $115 cash for transportation costs for the November 1 purchase.
5. Dollar Store sells merchandise for $2,484 with terms n/30.
6. The cost of the merchandise is $1,242.
7. Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $265.
8. The returned items cost $133 the items were not damaged and were returned to inventory.

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