Question
Johns Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018: John's purchased merchandise on account
Johns Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018:
- John's purchased merchandise on account for $5,900. Freight charges of $750 were paid in cash.
- Johns returned some of the merchandise purchased in (1). The cost of the merchandise was $1,050 and Johns account was credited by the supplier.
- Merchandise costing $3,250 was sold for $6,100 in cash.
Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the merchandise purchased on account for $5,900.
2. Record the payment of freight charges for $750.
3. Record the return of merchandise costing $1,050.
4. Record the sale of merchandise for $6,100 in cash.
5. Record the cost of goods sold for $3,250.
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