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Part $1$

Peaceful Place Gift Shop uses a perpetual inventory system. Journalize the following transactions for Peaceful Place 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.$)$

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Part $1$

Feb. $3$: Purchased $ $3$ comma $200$ of merchandise inventory on account under terms $1/10,$n$/$EOM and FOB shipping point from Sassy's Flowers.

Date

Accounts

Debit

Credit

Feb. $3$

Merchandise Inventory

$3,200$

Accounts Payable$$Sassy$\text{'}$s Flowers

$3,200$

Part $2$

Feb. $7$: Returned $ $500$ of defective merchandise purchased on February $3.$

Date

Accounts

Debit

Credit

Feb. $7$

Accounts Payable$$Sassy$\text{'}$s Flowers

$500$

Merchandise Inventory

$500$

Part $3$

Feb. $9$: Paid freight bill of $ $200$ on February $3$ purchase.

Date

Accounts

Debit

Credit

Feb. $9$

Merchandise Inventory

$200$

Cash

$200$

Part $4$

Feb. $10$: Sold merchandise inventory on account for $ $4$ comma $900$ to Time Meditation. Payment terms were $1/15,$n$/30.$ These goods cost the company $ $2$ comma $450.$

Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step.

Date

Accounts

Debit

Credit

Feb. $10$

Accounts Receivable$$Time Meditation

$4,851$

Sales Revenue

$4,851$

Part $5$

Now journalize the expense related to the February $10$ salelong dashCost of$$ goods, $ $2$ comma $450.$

Date

Accounts

Debit

Credit

Feb. $10$

Cost of Goods Sold

$2,450$

Merchandise Inventory

$2,450$

Part $6$

Feb. $12$: Paid amount owed on credit purchase of February $3,$ less the return and the discount.

Date

Accounts

Debit

Credit

Feb. $12$

Accounts Payable$$Sassy$\text{'}$s Flowers

$2,700$

Cash

$2,673$

Merchandise Inventory

$27$

Part $7$

Feb. $28$: Received cash from Time Meditation in full settlement of their debt.

Date

Accounts

Debit

Credit

Feb. $28$