Following are the merchandising transactions of Dollar Store.

November $1$ Dollar Store purchases merchandise for $$1,600$ 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 $$250$ of defective merchandise purchased on November $1,$ and paid for on November $5,$ for a cash refund.

November $10$ Dollar Store pays $$80$ cash for transportation costs for the November $1$ purchase.

November $13$ Dollar Store sells merchandise for $$1,728$ with terms $\frac{n}{30}.$ The cost of the merchandise is $$864.$

November $16$ Merchandise is returned to the Dollar Store from the November $13$ transaction. The returned items are priced at $$260$ and cost $$130$; 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

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

Dollar Store pays cash for the November $1$ purchase.

Note: Enter debits before credits.

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