Following are the merchandising transactions of Dollar Store.

November $1$ Dollar Store purchases merchandise for $$1,000$ on terms of $\frac{2}{5},\frac{n}{30},$ 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 $$100$ of defective merchandise purchased on November $1,$ and

paid for on November $5,$ for a cash refund.

November $10$ Dollar Store pays $$50$ cash for transportation costs for the November $1$ purchase.

November $13$ Dollar Store sells merchandise for $$1,080$ with terms $\frac{n}{30}.$ The cost of the merchandise is $$540.$

November $16$ Merchandise is returned to the Dollar Store from the November $13$ transaction. The returned items

are priced at $$255$ and cost $$128$; 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.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

The returned items cost $$128$; the items were not damaged and were returned