Journal Entries for Merchandise Transactions-Perpetual System Rockford Corporation, which began business on August 1, sells on terms of 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions for August are given below. Unless noted, all transactions are on account and involve merchandise held for resale. The perpetual inventory system is used. Aug. 1 Purchased merchandise from Norris, Inc., $4,000, terms 2/10, n/30. 5 Paid freight on shipment from Norris, Inc., $220. 7 Sold merchandise to Denton Corporation, $5,500 ($4,100 cost). 7 Paid $300 freight on August 7 shipment and billed Denton for the charges. 9 Returned $800 worth of the merchandise purchased August 1 from Norris, Inc., because it was defective. Norris approved the return. 9 Received $750 of returned merchandise ($500 cost) from Denton Corporation. Rockford approved the return. 10 Paid Norris, Inc., the amount due. 14 Purchased from Chambers, Inc., goods with a price of $9,000. Terms 1/10, n/30. 15 Paid freight on shipment from Chambers, Inc., $320. 17 Received the amount due from Denton Corporation. 18 Sold merchandise to Weber, Inc., $9,600 ($6,600 cost). 20 Paid $350 freight on August 18 shipment and billed Weber for the charges. 24 Paid Chambers, Inc., the amount due. 28 Received the amount due from Weber, Inc. Date Aug. 1 5 7 GENERAL JOURNAL Description Purchases from Norris, Inc., 2/10, n/30. Debit Credit $ $ Paid freight on Norris, Inc., shipment. Sales to Denton Corporation. 7 Cost of goods sold to Denton Corporation. 7 6 Paid freight on shipment to Denton Corporation and billed Denton. Returned goods to Norris, Inc. 9 Issued credit memo to Denton for goods returned. 9 10 Cost of goods returned by Denton Corporation. 14 Cash Paid Norris, Inc., the amount due. Purchases from Chambers, Inc., 1/10, n/30. 15 Paid freight on Chambers shipment. 17 Cash = Received amount due from Denton Corporation. 18 18 Sales to Weber, Inc. Cost of goods sold to Weber, Inc. 20 24 24 Paid freight on shipment to Weber, Inc., and billed Weber. Cash Paid Chambers, Inc., the amount due. 28 Cash Received amount due from Weber, Inc. = = =