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 $7,000; terms were 2/10, n/30.
	12	Paid $520 cash for freight on the August 10 purchase.
	16	Returned merchandise costing $600 (part of the $7,000 purchase).
	19	Paid for merchandise purchased on August 10.
	22	Sold merchandise on account costing $4,000 for $4,600; terms were 2/10, n/30.
	25	Customer returned merchandise costing $365 that had been sold on account for $400 (part of the $4,600 sale).
	31	Received payment from customer for merchandise sold on August 22.

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	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	$Answer	$Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Purchased merchandise with 2/10, n/30 terms.
	12	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Paid freight on August 10 purchase.
	16	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Returned merchandise from August 10 purchase.
	19	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cash	Answer	Answer
		Paid for merchandise purchased on August 10 within the discount period.
	22	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		To record revenue from sale of merchandise.
	22	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		To record cost of merchandise sold and to reduce inventory.
	25	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		To record sales return by customer.
	25	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		To record cost of goods returned by customers.
	31	Cash	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		To record receipt of cash from customer within the discount period.