Question
The retail business, Fleet Foot Runners, uses the perpetual inventory system. The following transactions for Fleet Foot Runners occurred in the month of May: 3
The retail business, Fleet Foot Runners, uses the perpetual inventory system. The following transactions for Fleet Foot Runners occurred in the month of May: 3 - Purchase Invoice- purchases 40 pairs of cross-training running shoes from Lau's Sports Warehouse for $39.95 per pair, terms 2/10 net 30. The amount before taxes was $1.598 plus HST of $207.74, total $1,805.74. 7 - Credit Invoice- Returned five pairs of defective running shoes to Lau's Sports Warehouse and received a full credit for these items. 12 - Cheque Copy- Deducted the discount for early payment, and paid the full amount owed to Lau's Sports Warehouse. 22 - Cash Register Tape- Sold five pairs of cross-training running shoes at a retail price of $74.95 per pair. Amount of the cash sales was $374.75 plus HST of $48.72, total $423.47. 29 - Cash Register Tape- A customer returned a pair of the cross-training running shoes after wearing them for one week, complaining that they did not fit properly. The manager of Fleet Foot Runners granted a full cash refund. Unfortunately. the runners were worn and damaged and could not be sold again. (Note: This transaction needs two separate journal entries) Task 1. In your workbook/notes, journalize the above transactions for Fleet Foot Runners. 2. Journalize the transactions dated May 3, 7, and 12, for Lau's Sports Warehouse. Lau's cost is $19.95 per pair of running shoes.
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