Journal Entrles for Merchandlse Transactions-Perpetual System Webster Company was established on July 1. its sales terms are 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions for the first month of operations are given below. Unless noted, all transactions are on account and involve merchandise held for resale. Webster Company uses the perpetual inventory system july 1 Purchased goods from Dawson, Inc. $2.700; terms 1/10, n/30. 2 Purchased goods from Penn Company, $5000; terms 2/10, n/30. 3 Paid freight on shipment from Dawson, $180. 5 Sold merchandise to Ward, Inc., $2,100 ($ 1,775 cost) 5 Paid freight on shipment to Ward, Inc $140. (Hint:debit Delivery Expense) g Returned $800 worth of the goods purchased july 1 from Dawson, Inc, because some goods were damaged. Dawson approved the return. 9 Received returned goods from Ward, Inc., worth $300 ($230 cost) 10 Paid Dawson, Inc, the amount due 10 Purchased goods from Dorn Company with a list price of $3,200. Terms 2/10, n/30 11 Paid freight on shipment from Dorn Company $210. 15 Received the amount due from Ward, Inc 15 Sold merchandise to Colby Corporation, $4,000 ($3.200 cost) 16 Mailed a check to Penn Company for the amount due on its July 2 invoice. 18 Received an allowance of $800 from Dorn Company for defective merchandise purchased on July 10 19 Paid Dorn Company the amount due. 25 Received the amount due from Colby Corporation. Prepare the necessary journal entries for the Webster Company. GENERALJOURNAL Date Description Debit Credit July 1 Inventory 2,700 Accounts Payable 2,700 Purchases from Dawson, Inc., 1/10, n/30 2 Inventory 5,000 Accounts Payable 5,000 Purchases from Penn Company, 2/10, n/30 180 3 Inventory 180 Cash Paid freight on Dawson shipment. 2,100 2,100 5 Accounts Receivable Sales Revenue Sales to Ward, Inc. E Mer s to Ward, Inc 5 Delivery Expense 140 Cash 140 Cost of goods sold to Ward, Inc Cost of Goods Sold 1,775 Inventory 1,775 Paid freight on shipment to Ward, Inc 8 Accounts Payable 800 Inventory 800 Returned goods to Dawson, Inc 9 | Sales Returns and Allowances # 300 Accounts Receivable 300 Issued credit memo to Ward, Inc, for goods returned 9 Inventory 230 Cost of Goods Sold 230 Cost of goods returned by Ward, Inc 10 Accounts Payable 1,900 Inventory 20 Cash 1,880 Paid Dawson, Inc. the amount due. 10 Inventory 3,200 Accounts Payable 3,200 Purchases from Dorn Company, 2/10, n/30 11 Inventory 210 210 Paid freight on Dorn shipment - er 15 Cash Sales Discounts Accounts Receivable Received amount due from Ward, inc. 5 Accounts Receivable 4,000 Sales Revenue 4,000 Sales to Colby Corporation. 15 Cost of Goods Sold 3,200 3,200 Inventory Cost of goods sold to Colby Corporation 5,000 16 Accounts Payable 5,000 inventory Paid Penn Company the amount due. 16 Accounts Payable 800 800 Received credit memo for price adjustment from Dorn Company 19 Accounts Payable 2,400 Inventory 48 Cash Paid Dorn the amount due. 25 Cash Sales Discounts 4,000 Accounts Receivable Received amount due from Colby Corporation
