Question

Inv 3 ES Re se P Prepare journal entries for the following merchandising transactions of Dollar Store assuming it uses a perpetual inventory system and the gross method. Nov. 1 Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, in- voice dated November 1. 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. 10 Dollar Store pays $90 cash for transportation costs for the November 1 purchase. 13 Dollar Store sells merchandise for $1,600 with terms n/30. The cost of the merchandise is $800. 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $160 and cost $80; the items were not damaged and were returned to inventory.

Answer 1

Answer: 1900 Tournal Entries: NOV-01 Rati Accound Titles and exploration Debit.co) cediteb) merchandise inventory $1,500 Accounts payable $1,500 Accounts payable $1,500 $30 Cash $1,470 cash $ 200 | 4000 NOV-05 merchandise inventory Nov-of merchandise inventory merchandise inventory cash $90 NOV-10 90 $1,600 NOV-13 Accounts receivable sales cost of goods sed $1,600 800 NOV-12 $800 merchandise inventory sales return and allowances $160 INOV16 Accounts receivable $160 merchandise inventory $80 NOV16 cost of goods sold $80