P 10 - Merchandising Transactions: Periodic Inventory System

Refer to the data below.

REQUIRED

Prepare journal entries to record the transactions, assuming use of the periodic inventory system.

July 1 Sold merchandise to Lina Lopez on credit, terms n/30, FOB shipping point, $4,200 (cost, $2,520). 3 Purchased merchandise on credit from Ruff Company, terms n/30, FOB shipping point, $7,600. 5 Paid Craft Freight for freight charges on merchandise received, $580. 8 Purchased merchandise on credit from Kansas Supply Company, terms n/30, FOB shipping point, $7,200, which includes $400 freight costs paid by Kansas Supply 12 Returned some of the merchandise purchased on July 3 for credit, $1,200. 15 Sold merchandise on credit to Peter Watts, terms n/30, FOB shipping point, $2,400 (cost, $1,440). 17 Sold merchandise for cash, $2,000 (cost, $1,200). 18 Accepted for full credit a return from Lina Lopez and returned merchandise to inventory, $400 (cost, $240). 24 Paid Ruff Company for purchase of July 3 less return of July 12. 25 Received cheek from Lina Lopez for July 1 purchase less the return on July 18