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PART I. PURCHASES AND SALES OF MERCHANDISE (Module 7) Suppose Heat Miser Air Conditioner Company engaged in the following transactions during June of the current

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PART I. PURCHASES AND SALES OF MERCHANDISE (Module 7) Suppose Heat Miser Air Conditioner Company engaged in the following transactions during June of the current year: Purchased inventory on account with credit terms of 1/10, n/EOM, $1,600. Returned 40% of the inventory purchased on June 3. It was defective. Jun. 3 9 Sold goods for cash, $920 (cost, $550). 12 Purchased goods for $5,000 on account. Credit terms were 3/15, n/30 15 Paid a $260 freight bill on goods purchased. 16 Sold inventory for $4,000 cash (cost, $2,360). 17 18 Sold inventory for $2,000 on account with credit terms of 2/10, n/30 (cost, $1,180). 22 Received returned goods from the customer of the June 17 sale, $800 (cost, $480). Paid supplier for goods purchased on June 15. 24 Received cash in full settlement of the account from the customer who purchased inventory on June 18. 28 Paid the amount owed on account from the purchase of June 3. 29 30 The company estimated that $400 of merchandise sold will be returned with a cost of $240. (Source is the Chapter 5 Check Your Understanding problem on pages 284- 286. Solution is on pages 285- 286.) Instructions: Use the data from the scenario above to right the journal entries for each of the transactions identified above. Use the journal entry grid on the following two pages. Each journal entry should be identified by its date. Debit Credit Account Name Date

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