Nov 4 Purchased $5,800 of merchandise on account from Goodsale Tire. Terms, 4/15, n/45, FOB shipping point. Goodsale Tire prepaid the $100 shipping cost and added the amount to the invoice. 7 Purchased $100 of supplies on account from Office Supplies. Terms, 1/10, n/30,FOB destination. 9 Sold $1,700 (cost, $200 ) of merchandise on account to W. Furmick. Terms, 1/15,n/45, FOB destination. 11 Paid $105 freight charges to deliver goods to W. Furmick. 13 Returned $400 of the merchandise purchased on November 4 and received a credit. 15 Sold $840 (cost, $400 ) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Goodsale Tire the amount due from the November 4 purchase in full. 20 W. Furmick returned $200 (cost, $100 ) of merchandise from the November 9 sale. 22 Purchased $2,100 of inventory. Paid cash. 23 Received payment in full from W. Furmick for the November 9 sale. 30 The refund liability for the month of November was estimated to be $250. The cost of goods estimated to be returned was $100. Requirement 1. Journalize the transactions on the books of Best Deal Tire, Inc. assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any joumal entries.) Nov 4: Purchased $5,800 of merchandise on account from Goodsale Tire. Terms, 4/15,n/45, FOB shipping point. Goodsale Tire prepaid the $100 shipping cost and added the amount to the invoice. Nov 7: Purchased $100 of supplies on account from Office Supplies. Terms, 1/10, n/30, FOB destination. Nov 9: Sold $1,700 (cost, $200 ) of merchandise on account to W. Furmick. Terms, 1/15, n/45, FOB destination. Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Nov 11: Paid $105 freight charges to deliver goods to W. Furmick. \begin{tabular}{c|c|c|c|c|} \hline \multicolumn{2}{c|}{ Journal Entry } & \multicolumn{2}{c}{} \\ \hline \multicolumn{2}{c|}{ Date } & Accounts & Debit & Credit \\ \hline \multirow{4}{*}{ Nov } & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} Nov 13: Returned $400 of the merchandise purchased on November 4 and received a credit. Nov 15: Sold $840 (cost, $400) of merchandise to cash customers. Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We w Now joumalize the cost of goods sold related to the sale of merchandise from November 15 . Nov 16: Paid for the supplies purchased on November 7. Nov 18: Paid Goodsale Tire the amount due from the November 4 purchase in full. N Nov 20: W. Furmick returned $200 (cost, $100) of merchandise from the November 9 sale. Start by recording the receivable adjustment portion of the merchandise return. (Do not yet record the inventory adjustmer Nov 23: Received payment in full from W. Furmick for the November 9 sale. Nov 30: The refund liability for the month of November was estimated to be $250. The cost of goods estimated to be returned was $100. Begin by journalizing the liability portion of the entry. (Do not yet record the asset portion of the entry. We will do that in the following step.)
