Question 3

Central Paint Distributors uses a perpetual inventory system. The company had the following transactions in March.

Mar. 16

Sold $13,900 of merchandise to Fresh Look Paint Stores, terms 2/10, n/30, FOB destination. The merchandise had cost Central Paint Distributors $9,300.

17

Paid freight costs of $140 for the March 16 sale.

18

Gave Fresh Look Paint Stores an allowance of $760 for the March 16 sale. There was some minor damage to the goods.

25

Collected the balance due from Fresh Paint Stores.

For each transaction, make a journal entry to record the transaction. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

(To record sales)

(To record cost)

Mar. 25

For each transaction, indicate the amount by which the transaction increased or decreased total assets, total liabilities, and owner's equity. Indicate No Effect if the transaction neither increased nor decreased any of these items.

DateAssetsLiabilitiesOwner's EquityMar. 16

Mar. 16

Mar. 17

Mar. 18

Mar. 25

Mar. 25