Merchandising Transactions: Perpetual Inventory System

P$6.$ Teague Company engaged in the following transactions in October $2014$:

Oct. $7$ Sold merchandise on credit to Mel Forde, terms n$/30,$ FOB shipping point,

$$12,000($cost$,$ $$7,200).$

$8$ Purchased merchandise on credit from Surf Company, terms n$/30,$ FOB

shipping point, $$24,000.$

$9$ Paid Surf Company for shipping charges on merchandise purchased on

October $8,$ $$1,016.$

$10$ Purchased merchandise on credit from Tata Company, terms n$/30,$ FOB

shipping point, $$38,400,$ including $$2,400$ freight costs paid by Tata.

$14$ Sold merchandise on credit to David Johnson, terms n$/30,$ FOB shipping

point, $$9,600($cost$,$ $$5,760).$

$14$ Returned damaged merchandise received from Surf Company on October $8$

for credit, $$2,400.$

$17$ Received check from Mel Forde for her purchase of October $7.$

$19$ Sold merchandise for cash, $$7,200($cost$,$ $$4,320).$

$20$ Paid Tata Company for purchase of October $10.$

$21$ Paid Surf Company the balance from the transactions of October $8$ and

October $14.$

$24$ Accepted from David Johnson a return of merchandise, which was put back

in inventory, $$800($cost$,$ $$480).$

Required

$1.$ Prepare journal entries to record the transactions, assuming use of the perpetual

inventory system. $($Hint: Refer to the TriLevel Problem