Exercise 5-3

Carla Vista Stores is a new company that started operations on March 1, 2017. The company has decided to use a perpetual inventory system. The following purchase transactions occurred in March:

Mar. 1		Carla Vista Stores purchases $8,500 of merchandise for resale from Octagon Wholesalers, terms 2/10, n/30, FOB shipping point.
2		The correct company pays $145 for the shipping charges.
3		Carla Vista returns $1,200 of the merchandise purchased on March 1 because it was the wrong colour. Octagon gives Carla Vista a $1,200 credit on its account.
21		Carla Vista Stores purchases an additional $14,000 of merchandise for resale from Octagon Wholesalers terms 2/10, n/30, FOB destination.
22		The correct company pays $160 for freight charges.
23		Carla Vista returns $550 of the merchandise purchased on March 21 because it was damaged. Octagon gives Carla Vista a $550 credit on its account.
30		Carla Vista pays Octagon the amount owing for the merchandise purchased on March 1.
31		Carla Vista pays Octagon the amount owing for the merchandise purchased on March 21.

Accounts Payable Accounts Receivable Accumulated Depreciation - Building Accumulated Depreciation - Equipment Accumulated Depreciation - Furniture Advertising Expense Building Cash Cost of Goods Sold Current Portion of Mortgage Payable Current Portion of Non-Current Notes Payable Depreciation Expense Freight In Freight Out Furniture Income Summary Insurance Expense Interest Expense Interest Payable Interest Revenue Merchandise Inventory No Entry Notes Payable Owner's Capital Owner's Drawings Prepaid Insurance Property Tax Expense Purchase Discounts Purchase Returns and Allowances Purchases Rent Expense Rent Revenue Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns and Allowances Short-Term Investments Supplies Supplies Expense Telephone Expense Unearned Revenue Utilities Expense

Prepare Carla Vista Stores' journal entries to record the above transactions. (Credit account titles the account titles and enter 0 for the amounts. Record journal entries in the order present Date Account Titles and Explanation Debit Credit >