Journal Entries for Merchandise Transactions Perpetual system Janetto Distributing Company uses the perpetual inventory system. Janetto had the following transactions related to merchandise during the month of August Aug. 10 Purchased on account merchandise for resale for $5,000, terms were 2/10,n30 12 Paid 5220 cash for freight on the August 10 purchase. 16 Returned merchandise costing $400 (part of the 55.000 purchase) 19 Paid for merchandise purchased on August 10. 22 Sold merchandise on account costing $1,200 for $1,800, terms were 2/10, VI. 25 Customer returned merchandise costing 585 that had been sold on account for $200 part of the $1,800 sale 31 Received payment from customer for merchandise sold on August 22. 0 Required Record each of the transactions related to purchaing and selling merchandise for the Janetto Distributing Company, GENERAL JOURNAL Date Description Debit Credit Aug 10 Inventory $ 5,000 $ Accounts Payable 5,000 Purchased merchandise with 2/10, 1/30 terms 12 Inventory 220 Cash 220 Paid freight on August 10 purchase. 600 16 Accounts Payable 0 600 Inventory Returned merchandise from August 10 purchase. 0 e 0 600 0 600 0 4,600 0 0 92 4,508 0 0 0 0 0 0) 0 16 Accounts Payable Inventory Returned merchandise from August 10 purchase. 19 Accounts Payable Inventory Cash Paid for merchandise purchased on August 10 within the discount period. 22 Accounts Receivable Sales Revenue To record revenue from sale of merchandise. 22 Cost of Goods Sold Inventory To record cost of merchandise sold and to reduce inventory. 25 Sales Returns and Allowances Accounts Receivable To record sales return by customer. 25 Inventory Cost of Goods Sold To record cost of goods returned by customers. 31 Cash Sales Discounts Accounts Receivable To record receipt of cash from customer within the discount period. o o 0 . . O O e 0 O o D 0 0 0 e 0 0 0 0