Q4

Peaceful Palace Gift Shop uses a perpetual inventory system. Journalize the following transactions for Peaceful Palace Gift Shop. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount. Round all numbers to the nearest whole dollar.) (Click the icon to view the transactions.) Feb. 3: Purchased $2,800 of merchandise inventory on account under terms 3/10,n/EOM and FOB shipping point from Sascha's Nest. Feb. 3 Purchased $2,800 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Sascha's Nest. Feb. 7 Returned $400 of defective merchandise purchased on February 3. Feb. 9 Paid freight bill of $100 on February 3 purchase. Feb. 10 Sold merchandise inventory on account for $4,000 to Tiger Wellness Center. Payment terms were 1/15,n/30. These goods cost the company $2,000. Feb. 12 Paid amount owed on credit purchase of February 3, less the return and the discount. Feb. 28 Received cash from Tiger Wellness Center in full settlement of their debt