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:

Required

Prepare journal entries for each of the transactions for the Cushing Distributing Company.

June	1	Purchased on account merchandise for resale for $10,000; terms were 2/10, n/30.
	3	Paid $550 cash for freight on the June 1 purchase.
	7	Returned merchandise costing $600 (part of the $10,000 purchase).
	10	Paid for merchandise purchased on June 1.
	13	Sold merchandise on account costing $8,000 for $10,000; terms were 2/10, n/30.
	16	Customer returned merchandise costing $750 that had been sold on account for $1,000 (part of the $10,000 sale).
	22	Received payment from customer for merchandise sold on June 13.
GENERAL JOURNAL
Date		Description	Debit	Credit
June	1	Answer
$Answer	$Answer
		Answer
Answer	Answer
		Purchased merchandise with 2/10, n/30 terms.
	3	Answer
Answer	Answer
		Answer
Answer	Answer
		Paid freight on June 1 purchase.
	7	Answer
Answer	Answer
		Answer
Answer	Answer
		Returned merchandise from June 1 purchase.
	10	Answer
Answer	Answer
		Answer
Answer	Answer
		Cash	Answer	Answer
		Paid for merchandise purchased on June 1 within the discount period.
	13	Answer
Answer	Answer
		Answer
Answer	Answer
		To record revenue from sale of merchandise.
	13	Answer
Answer	Answer
		Answer
Answer	Answer
		To record cost of merchandise sold and to reduce inventory.
	16	Answer
Answer	Answer
		Answer
Answer	Answer
		To record sales return by customer.
	16	Answer
Answer	Answer
		Answer
Answer	Answer
		To record cost of goods returned by customers.
	22	Cash	Answer	Answer
		Answer
Answer	Answer
		Answer
Answer	Answer
		To record receipt of cash from customer within the discount period.