Question

John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: John’s purchased merchandise on account for $6,000. Freight charges of $800 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,100 and John’s account was credited by the supplier. Merchandise costing $3,300 was sold for $6,200 in cash.

Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Answer #1
Debit Credit
1 Inventory 6000
      Accounts Payable 6000
2 Inventory 800
      Cash 800
3 Accounts Payable 1100
       Inventory 1100
4 Cash 6200
       Sales Revenue 6200
5 Cost of Goods Sold 3300
       Inventory 3300
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