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Journal Entries for Merchandise Transactions Perpetual System Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the
Journal Entries for Merchandise TransactionsPerpetual System
Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the month of June:
June Purchased on account merchandise for resale for $; terms were n
Paid $ cash for freight on the June purchase.
Returned merchandise costing $part of the $ purchase
Paid for merchandise purchased on June
Sold merchandise on account costing $ for $; terms were n
Customer returned merchandise costing $ that had been sold on account for $part of the $ sale
Received payment from customer for merchandise sold on June
Required
Prepare journal entries for each of the transactions for the Cushing Distributing Company.
GENERAL JOURNAL
Date Description Debit Credit
June Answer
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Purchased merchandise with n terms.
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Paid freight on June purchase.
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Returned merchandise from June purchase.
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Paid for merchandise purchased on June within the discount period.
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To record revenue from sale of merchandise.
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To record cost of merchandise sold and to reduce inventory.
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To record sales return by customer.
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To record cost of goods returned by customers.
Cash Answer
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To record receipt of cash from customer within the discount period.
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