Question
Prepare journal entries to record the following merchandise transactions of Jorge Enterprise Equipment, which applies the perpetual inventory system. Show all needed calculations for full
Prepare journal entries to record the following merchandise transactions of Jorge Enterprise Equipment, which applies the perpetual inventory system. Show all needed calculations for full points.
June 1. Purchased merchandise from Lisa Company for $13,500 under credit terms of 2/15, n/45, FOB destination, and invoice dated June 1.
3. Sold merchandise to Walter for $9,000 under credit terms of 1 /10, n/30, FOB destination, invoice date June 3. The merchandise had cost $4,500.
5. Paid $450 cash for shipping charges related to the June 3 sale. 6. Returned $2,300 of the merchandise purchased on June 1 to Lisa Company. 7. Walter returned merchandise from the June 3 sale that had cost Osaka $705 and had been
sold for $1,500. The merchandise was restored to inventory. 13. Received the balance due from Walter less the return. 14. Paid the amount due Lisa Company.
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