Vitamin Shoppe Co. sells protein powder. Vitamin shoppe Co purchased the powder from manufacturers throughout the country. Vitamin shoppe started in 2010 with inventory of $200,000

Info. On vitamin shoppe Co. 2010 purchases:

--Bought on account, inventory of $800,000. The purchase terms were 2/10, n/30

--Vitamin shoppe pays within 10 days and gets the discount

--vitamin shoppe uses NET METHOD to record all purchases

--All of Vitamin shoppe purchases are done with F.O.B. shipping point

--The freight-In charged on the purchase made was $30,000

--Inventory, net of discount, costing $40,000, was returned to the protein powder manufacturer

--sales for 2007, all made on account , totaled $830,000

--$424,000 of inventory remained in their stores on 12/31/10

Journalize all of the above using both:

--Close out all temporary accounts relating to inventory

--record the sale

--draw appropriate inventory accounts for each of the methods:

1) Period Method

2) Perpetual Method