Question

Johns Specialty Store uses a periodic Inventory system. The following are some Inventory transactions for the month of May:
0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. Dr. Inventory A/c $6,300

Cr. Accounts Payable $6,300

Explanation: Inventory is an asset, when inventory(asset) increases, debit $6,300 in journal entry. Accounts payable is a liability, when Accounts payable (liability) increases, credit $6,300 in journal entry. inventory purchased on account means it is purchased on credit.

2. Dr. Accounts Payable $1,250

Cr. Inventory $1,250

Explanation: When inventory is returned, inventory is reduced (asset decreased).when asset decreases, credit $1,250 in the journal entry. when inventory is returned, Accounts payable is also reduced (liability decreased). when liability decreases, debit $1,250 in the journal entry.

3. Dr. Cash A/c $6,500

Cr. Profit & Loss A/c   $3,050

Cr. Inventory A/c   $3,450

Explanation: when merchandise (inventory) is sold for cash, Cash is increased, when cash (asset) increases debit $6,500 in journal entry. when sale is made, inventory is reduced. the cost of inventory amounting $3,450 is credited in the journal entry. The difference between sales price ($6,500) and cost of inventory ($3,450) is the profit earned ($3,050). when profit is earned (increased) credit $3,050 in journal entry named profit & loss A/c

Add a comment
Know the answer?
Add Answer to:
John's Specialty Store uses a periodic Inventory system. The following are some Inventory transactions for the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...

    John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $6,300. Freight charges of $950 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,250 and John's account was credited by the supplier. 3. Merchandise costing $3,450 was sold for $6,500 in cash. Required: Prepare the necessary journal entries to record these transactions....

  • John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...

    John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May. 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions....

  • John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...

    John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: John’s purchased merchandise on account for $6,300. Freight charges of $950 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,250 and John’s account was credited by the supplier. Merchandise costing $3,450 was sold for $6,500 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no...

  • John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...

    John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018 1. John's purchased merchandise on account for $5,400. Freight charges of $500 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $800 and John's account was credited by the supplier 3. Merchandise costing $3,000 was sold for $5,600 in cash. Required: Prepare the necessary journal entries to record these...

  • John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...

    John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018 1. John's purchased merchandise on account for $5,300. Freight charges of $450 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $750 and John's account was credited by the supplier. 3. Merchandise costing $2,950 was sold for $5,500 in cash. Required: Prepare the necessary journal entries to record these...

  • John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of...

    John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018: 1. John's purchased merchandise on account for $5,100. Freight charges of $350 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $650 and John's account was credited by the supplier. 3. Merchandise costing $2,850 was sold for $5,300 in cash. Required: Prepare the necessary journal entries to record these...

  • John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...

    John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: 1. John's purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and John's account was credited by the supplier. 3. Merchandise costing $3,700 was sold for $7,000 in cash. Required: Prepare the necessary journal entries to record these...

  • John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...

    John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,900. Freight charges of $750 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,050 and John's account was credited by the supplier. 3. Merchandise costing $3,250 was sold for $6,100 in cash. Required: Prepare the necessary journal entries to record these transactions....

  • John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: John's purchased merchandise on account for $5,700. Freight charges of $650 were paid in cash. John’s returned some of the mercha

    John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May:John's purchased merchandise on account for $5,700. Freight charges of $650 were paid in cash.John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $950 and John’s account was credited by the supplier.Merchandise costing $3,150 was sold for $5,900 in cash. Required:Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select...

  • John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...

    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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT