exercise 5-6 Recording merchandise transactions: purchase and sale discountsperpetual LO3

Chad Funk is a hair stylist who opened a business selling hair products. He imports products from around the world and sells to salons in Canada.

Oct.1Purchased $3,800 of hair spray from Orbit Pro; terms 3/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $320. 5Sold shampoo costing $1,260 to Barber & Co. for a price of $1,800 with terms of 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $140. 7Returned $1,700 of inventory to Orbit Pro due to an error in the October 1 order. 10Paid Orbit Pro for the purchase on October 1. 14Barber & Co. returned $340 of inventory from the sale on October 5. The inventory had a cost of $238. 22Received the payment from Barber & Co. on the October 5 sale. 23Purchased $4,400 of hair conditioner from Keratin Hair; terms 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $900. 25Sold hair gel to Styling Room for an invoice price of $2,200, terms 2/10, n/30, FOB destination. The hair gel had a cost of $1,540. The appropriate party paid the shipping cost of $450. 26Paid for the purchase on October 23. 31Received the payment from Styling Room on the October 25 sale.

Required: Record the journal entries for the month of October. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry descriptions are provided already in the journal entry worksheet.)