Question $2-$ Merchandise Journal Entries $(10$ marks$)$

The following merchandise inventory transactions occurred in the month of December in the operations of Spectatre Enterprises The company uses a perpetual inventory system and records all purchase$/$sales discounts for early payment at the time of payment. Ignoring any sales$/$excise taxes, prepare the necessary journal entries for these transactions.

Dec $3$ Dec $8$ Dec $9$ Dec $13$ Dec $20$

Dec $26$ Dec $31$

Sold inventory costing $$3,392$ to AGN Corp on credit for $$4,837.$ Terms $1/10$ net $30.$ Purchased inventory costing $$6,640$ from AGN Corp on credit. Terms $5/10$ net $30.$

$$1,123$ of the merchandise sold on Dec $3$ to AGN Corp was returned for credit on account. AGN Corp paid their account for $$2,877$

Spectatre Enterprises discovered that $$875$ worth of merchandise is defective and returned it to AGN Corp for adjustment to the account.

Sent a payment to AGN Corp for the full amount.

At the end of December, the merchandise inventory account had a balance of $$83,460.$ A physical count was done, adding up to $$84,272.$

Use the general journal on the next page to record your entries. Show your calculations:

General Journal

Date Account Title and Explanation Debit CreditQuestion $2-$ Merchandise Journal Entries $(10$ marks$)$

The following merchandise inventory transactions occurred in the month of

December in the operations of Spectatre Enterprises The company uses a

perpetual inventory system and records all purchase$/$sales discounts for early

payment at the time of payment. Ignoring any sales$/$excise taxes, prepare the

necessary journal entries for these transactions.

Use the general journal on the next page to record your entries.

Show your calculations:

General Journal