Question

2. (18 points) Petersen Book Store entered into the transactions listed below. In the journal provided, prepare Petersen's necessary entries, assuming use of the perpetual inventory system. Sept 2 Purchased $2,800 of merchandise on credit, terms 130. 5 Returned $400 of the items purchased on Sept 6. 6 Paid freight charges of $90 on the items purchased Sept 2. 19 Sold merchandise on credit for $4,500, terms 2/10, 1/30. The merchandise had an inventory cost of $1,900. (Two entries needed). 22 Of the merchandise sold on Sept 19, $500 of it was returned. The items had cost the store $180. (Two entries needed) 28 Received payment in full from the customer of Sept 19. 31 Paid for the merchandise purchased on Sept 2. Date Account Titles Debit Credit

Answer 1

Solution Date particulars Debit Gredit Sep 2 Inventory ale or 2800 2800 To Accounts payable alc [To record purchase of Inventary] 400 Seps Accounts payable al or To Inventory ale [To record purchase Returned] 400 90 sepe 90 Inventory al or To cash ale [to record Freight paid on Inventory] Sep 19 Accounts recelvable al or 4500 4500 To sales alc [ To record credet sales] cost of goods sold alc Dr To Inventory ale [ To record cost of sole] Sep 19 1 1900 1900 I can Sep 22 sale 500 return al or 500 To [ to record Account receivable al sale vietorn] 180 Sep 22 Inventory als Dr To cost of goods sold alc/ 180

Sep 28 3920 I 80 cash al or Discount allowed al Do [ 4000 X 27.] To accounts receivable al { 4500 - 500) 4000 { to record of sales payment received on descount] 2400 Sep 30 l Accounts payable al or [ 2800 – 400] To cash ale 2400 [ To record payment payable of purchase