Question
Johns Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: Johns purchased merchandise on account
Johns Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018:
Johns purchased merchandise on account for $6,200. Freight charges of $900 were paid in cash.
Johns returned some of the merchandise purchased in (1). The cost of the merchandise was $1,200 and Johns account was credited by the supplier.
Merchandise costing $3,400 was sold for $6,400 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.)
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