Journalize the following inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system Refer to the Chart of Accounts for exact wording of account titles Dec 1 Seller sold merchandise on account to the buyer, $4,750, terms 2 10, net 30, FOB shipping point The cost of the merchandise is $2,850 The seller prepays the freight of $75 3 Buyer returns $700 of merchandise as defective The cost of the merchandise is $420 8 Buyer pays within the discount period Chart of Accounts CHART OF ACCOUNTS Seller General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customer Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 523 Depreciation Expense 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 536 Credit Card Expense 560 Miscellaneous Expense 710 Interest Expense CHART OF ACCOUNTS Buyer General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 523 Depreciation Expense 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 536 Credit Card Expense 560 Miscellaneous Expense 710 Interest Expense General Journal Journalize the inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system Refer to the Chart of Accounts for exact wording of account titles Seller PAGE 1 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 Buyer PAGE 1 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 4 5 6

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Journalize the following inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of

Journalize the following inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.

Dec.	1	Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75.
	3	Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420.
	8	Buyer pays within the discount period.

Chart of Accounts

CHART OF ACCOUNTS

Seller

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Supplies
142	Prepaid Insurance
180	Land
190	Equipment
191	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
221	Sales Tax Payable
222	Customer Refunds Payable
231	Unearned Rent
241	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales

	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
523	Depreciation Expense
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Supplies Expense
536	Credit Card Expense
560	Miscellaneous Expense
710	Interest Expense

CHART OF ACCOUNTS

Buyer

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Supplies
142	Prepaid Insurance
180	Land
190	Equipment
191	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
221	Sales Tax Payable
222	Customers Refunds Payable
231	Unearned Rent
241	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales

	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
523	Depreciation Expense
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Supplies Expense
536	Credit Card Expense
560	Miscellaneous Expense
710	Interest Expense

General Journal

Journalize the inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.

Seller

PAGE 1

JOURNAL