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November 1 Dollar Store purchases merchandise for $2,500 on terms of 2/5, 1/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays
November 1 Dollar Store purchases merchandise for $2,500 on terms of 2/5, 1/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 purchase. November 7 Dollar Store discovers and returns $250 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. November 10 Dollar Store pays $125 cash for transportation costs for the November 1 purchase. November 13 Dollar Store sells merchandise for $2,700 with terms /30. The cost of the merchandise is $1,350. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $280 and cost $140; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method View transaction list Journal entry worksheet
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