Nov. 4 Nov. 6 Nov. 8 Nov. 10 Nov. 11 Purchased merchandise inventory on account from Verona Company, $11,000. Terms 1/10, n/EOM, FOB shipping point. Paid freight bill of $210 on November 4 purchase. Returned half of the inventory purchased on November 4 from Verona Company. Sold merchandise inventory for cash, $1,400. Cost of goods, $560. FOB destination. Sold merchandise inventory to Garfield Corporation, $10,500, on account, terms 3/10, n/EOM. Cost of goods, $5,250. FOB shipping point. Nov. 12 Paid freight bill of $70 on November 10 sale. Nov. 13 Nov. 14 Nov. 17 Nov. 18 Nov. 20 Nov. 26 Nov. 28 Nov. 29 Sold merchandise inventory to Cabbell Company, $9,500, on account, terms of n/45. Cost of goods, $5,225. FOB shipping point. Paid the amount owed on account from November 4, less return and discount. Received defective inventory as a sales return from the November 13 sale, $500. Cost of goods, $275. Purchased inventory of $3,900 on account from Rockport Corporation. Payment terms were 2/10, n/30, FOB destination. Received cash from Garfield Corporation, less discount. Paid amount owed on account from November 18, less discount. Received cash from Cabbell Company, less return. Purchased inventory from Silk Corporation for cash, $12,400, FOB shipping point. Freight in paid to shipping company, $160. Nov. 4: Purchased merchandise inventory on account from Verona Company, $11,000. Terms 1/10, n/EOM, FOB shipping point. Date Accounts Nov. 4 Merchandise Inventory Accounts Payable-Verona Company Nov. 6: Paid freight bill of $210 on November 4 purchase. Date Accounts Nov. 6 Merchandise Inventory Cash Debit Credit Debit Credit Nov. 8: Returned half of the inventory purchased on November 4 from Verona Company. Date Accounts Nov. 8 Accounts Payable-Verona Company Merchandise Inventory Debit Credit Nov. 10: Sold merchandise inventory for cash, $1,400. Cost of goods, $560. FOB destination. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Nov. 10 Cash Sales Revenue Accounts Debit Now journalize the expense related to the November 10 sale-Cost of goods, $560. Date Accounts Nov. 10 Cost of Goods Sold Merchandise Inventory Credit Debit Credit Nov. 11: Sold merchandise inventory to Garfield Corporation, $10,500, on account, terms 3/10, n/EOM. Cost of goods, $5,250. FOB shipping point. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Nov. 11 Accounts Receivable-Garfield Corporation Sales Revenue Debit Now journalize the expense related to the November 11 sale-Cost of goods, $5,250. Date Accounts Nov. 11 Cost of Goods Sold Merchandise Inventory Debit Credit Credit Nov. 12: Paid freight bill of $70 on November 10 sale. Date Accounts Nov. 12 Delivery Expense Cash Debit Credit Nov. 13: Sold merchandise inventory to Cabbell Company, $9,500, on account, terms of n/45. Cost of goods, $5,225. FOB shipping point. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Nov. 13 Accounts Debit Now journalize the expense related to the November 13 sale-Cost of goods, $5,225. Date Nov. 13 Accounts Debit Nov. 14: Paid the amount owed on account from November 4, less return and discount. Date Nov. 14 Accounts Debit Credit Credit Credit Nov. 17: Received defective inventory as a sales return from the November 13 sale, $500. Cost of goods, $275. Start by preparing the entry to record the sales return and decrease the receivable. Do not update the Merchandise Inventory with this entry. We will do that in the following step. Date Nov. 17 Accounts Debit Credit Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise-Cost of goods returned, $275. Date Nov. 17 Accounts Debit Credit Nov. 18: Purchased inventory of $3,900 on account from Rockport Corporation. Payment terms were 2/10, n/30, FOB destination. Date Nov. 18 Accounts Debit Credit Nov. 20: Received cash from Garfield Corporation, less discount. Date Nov. 20 Accounts Nov. 26: Paid amount owed on account from November 18, less discount. Date Nov. 26 Accounts Nov. 28: Received cash from Cabbell Company, less return. Date Nov. 28 Accounts Debit Credit Debit Credit Debit Credit Nov. 29: Purchased inventory from Silk Corporation for cash, $12,400, FOB shipping point. Freight in paid to shipping company, $160. Start by preparing the entry to record the purchase of inventory. Do not record the freight. We will do that in the following step. Date Nov. 29 Accounts Now record the freight paid to shipping company, $160. Date Nov. 29 Accounts Debit Credit Debit Credit