Merchandising Transactions.

Jan 27, 2007 Purchased goods on account from Joe, $200,000. Term 4/15; n/30. FOB destination. The buyer prepaid the transportation charge of $5,000.

Feb 5 Returned $30,000 goods to Joe.

Feb 7 Paid all the amounts due to Joe.

Feb 8 Purchased goods on account from Dameon $300,000. Term 3/12; EOM. FOB shipping point. Dameon prepaid the transportation charge of $3000.

Feb 12 Returned $50,000 goods to Dameon.

Feb 14 Paid the amount due to Dameon.

Feb 15 Purchased goods on account from Juliyah, $400,000. Term 5/5; n/30. FOB destination. Juliyah paid the transportation charge of $6,000.

Feb 16 Returned $80,000 goods to Juliyah.

Feb 21 Paid the amount due to Juliyah.

Feb 22 Purchased goods on account from Trey, $500,000. Term 3/7; n/30. FOB shipping point. Trey prepaid the transportation charge of $6,000.

Feb 26 Returned $150,000 goods to Trey.

Feb 29 Paid the amount due to Trey.

March 1, Sold goods of $160,000 on account to George. Term 4/9; n/30. FOB shipping point. George paid transportation cost of $7,000. The cost of the goods sold to George was $70,000.

March 3 George returned $8,000 that had a cost of $2,500.

March 10 Collected the amount due from George.

March 11, Sold goods of $280,000 on account to Kevia. Term 3/15; n/30; FOB destination. The seller paid transportation charge of $4,000.

March 27 Collected the amount due from Kevia.

Required:

1. Assuming the company uses perpetual inventory method and records purchases and sales gross, make necessary entries for the above transactions. Please bring your work to class today.
2. Assuming the company uses periodic inventory system and records purchases and sales gross, make necessary entries for the above transactions. Please bring your work to class.
3. Assuming the company uses perpetual inventory method and records purchases and sales net, make necessary entries for the above transactions. Please bring your work to class today.
4. Assuming the company uses periodic inventory system and records purchases and sales net, make necessary entries for the above transactions. Please bring your work to class.