Joumalize the following transactions that occurred in November 2018 for Sarah's Special Place, assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Sarah's Special Place estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount.) More info Nov. 4 Nov. 6 Nov. 8 Nov. 10 Purchased merchandise inventory on account from Valsad Company, $8,000. Terms 2/10, n/EOM, FOB shipping point. Paid freight bill of $110 on November 4 purchase. Returned half of the inventory purchased on November 4 from Valsad Company Sold merchandise inventory for cash, $1,400. Cost of goods $560. FOB destination. Sold merchandise inventory to Garrett Corporation, $10,400, on account, terms 3/10, n/EOM. Cost of goods, $5,720. FOB shipping point. Paid freight bill of $50 on November 10 sale. Sold merchandise inventory to Callahan Company, $9.300 on account, terms of n/45. Cost of goods, $5.115. FOB shipping point. Paid the amount owed on account from November 4, less return and discount. Now 11 Nov. 12 Nov. 13 Nov. 14 More info Nov. 12 Paid freight bill of $50 on November 10 sale. Sold merchandise inventory to Callahan Company, $9,300 on account, terms Nov. 13 of n/45. Cost of goods, $5,115. FOB shipping point. Paid the amount owed on account from November 4, less return and Nov. 14 discount. Received defective inventory as a sales return from the November 13 sale, Nov. 17 $300. Cost of goods, $165. Purchased inventory of $3,800 on account from Rafferty Corporation. Nov. 18 Payment terms were 2/10, n/30, FOB destination Nov. 20 Received cash from Garrett Corporation, less discount. Nov. 26 Paid amount owed on account from November 18, less discount. Nov. 28 Received cash from Callahan Company, less return. Purchased inventory from Shanley Corporation for cash, $11,500, FOB Nov. 29 shipping point. Freight in paid to shipping company, $200. Nov. 4: Purchased merchandise inventory on account from Valsad Company, $8,000. Terms 2/10, n/EOM, FOB shipping point Date Accounts Debit Credit Nov. 4 Nov. 6: Paid freight bill of $110 on November 4 purchase. Date Accounts Debit Credit Nov. 6 Nov. 8: Retumed half of the inventory purchased on November 4 from Valsad Company Date Accounts Debit Credit Nov. 8 Nov. 10: Sold merchandise inventory for cash, $1,400. Cost of goods, S560. FOB destination. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Nov. 10 Now joumalize the expense related to the November 10 sale-Cost of goods, $560. Date Accounts Debit Credit Nov. 10 Nov. 11: Sold megchandise inventory to Garrett Corporation, $10,400, on account. Terms 3/10,n/EOM. Cost of goods, $5,720. FOB shipping point. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Nov. 11 Now journalize the expense related to the November 11 saleCost of goods, $5,720. Date Accounts Debit Credit Nov. 11 Nov. 12: Paid freight bill of $50 on November 10 sale. Date Accounts Debit Credit Nov. 12 Nov. 13: Sold merchandise inventory to Callahan Company for $9,300 on account, terms of n/45. Cost of goods, $5,115. FOB shipping point. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Nov. 13 Now journalize the expense related to the November 13 sale Cost of goods, $5,115. Date Accounts Debit Credit Nov. 13 Nov. 14: Paid the amount owed on account from November 4, less retum and discount. Date Accounts Debit Credit Nov. 14 Nov. 17: Received defective inventory as a sales return from the November 13 sale, $300. Cost of goods, S166. Start by preparing the entry to record the sales return and decrease the receivable. Do not update the Merchandise Inventory with this entry. We will do that in the following step. Date Accounts Debit Credit Nov. 17 Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise-Cost of goods returned, $165. Date Accounts Debit Credit Nov. 17 Nov. 18: Purchased inventory of $3,800 on account from Rafferty Corporation. Payment terms were 2/10, n/30, FOB destination. Date Accounts Debit Credit Nov. 18 Nov. 20: Received cash from Garrett Corporation, less discount. Date Accounts Debit Credit Nov. 20 Nov. 26: Paid amount owed on account from November 18, less discount. Date Accounts Debit Credit Nov. 26 Nov. 28: Received cash from Callahan Company, less return. Date Accounts Debit Credit Nov. 28 Nov. 29. Purchased inventory from Shanley Corporation for cash. $11,500, FOB shipping point. Freight in paid to shipping company, $200. Start by preparing the entry to record the purchase of inventory. Do not record the freight. We will do that in the following step Date Accounts Debit Credit Nov. 29 Now record the freight paid to shipping company, $200. Date Accounts Debit Credit Nov. 29
