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Following are the merchandising transactions of Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,700 on terms of 2/5, n/30, FOB shipping point, invoice
Following are the merchandising transactions of Dollar Store.
Nov. | 1 | Dollar Store purchases merchandise for $2,700 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. | ||
5 | Dollar Store pays cash for the November 1 purchase. | |||
7 | Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. | |||
10 | Dollar Store pays $135 cash for transportation costs for the November 1 purchase. | |||
13 | Dollar Store sells merchandise for $2,916 with terms n/30. The cost of the merchandise is $1,458. | |||
16 | Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $275 and cost $138 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.
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