Question

Becord journal entries for the following transactions in both Perpetual & Periodic Inventory systems. Use the ble under the transactions for your journal entries: Dec 2 Dec 6. Purchased $2,600 of merchandise inventory on account under terms 2/10, 1/30, and FOB shipping point. Shipping cost was $200 paid the same day. Returned $700 of defective merchandise purchased on Dec 2 Sold merchandise inventory on account for $3,000. Payment terms were 3/15, 1/45. The cost of inventory was $1,400. Paid amount owed on credit purchased of Dec 2, less the return and the discount. Received cash from Dec 10 customer in full, less the discount. Recorded an estimated sales returns of $5,000. Dec 11 Dec 22 Dec 31 Journal Entries: PERPETUAL system PERIODIC system Dec 2 Dec 6 Dec 10 Dec 11 Dec 22 Dec 31

Answer 1

D Н Perpetual Inventory System Periodic Inventory System 1 Debit Credit Debit Credit Date Accounts Titles Date Accounts Titles 3 Dec 02 Merchandise Inventory Accounts Payable $2,600.00 Dec 02 Purchases $2,600.00 Accounts Payable $2,600.00 $2,600.00 6 Dec 02 Merchandise Inventory $ 200.00 Dec 02 Freight in Expenses $ 200.00 $ 200.00 $ 200.00 Cash Cash 9 Dec 06 Accounts Payable $ 700.00 Dec 06 Accounts Payable $ 700.00 $ 700.00 $ 700.00 Merchandise Inventory Purchase Returns and Allowances 10 11 12 Dec 10 Accounts Receivable Dec 10 Accounts Receivable $3,000.00 $3,000.00 $3,000.00 Sales $3,000.00 Sales 13 14 Dec 11 Accounts Payable Cost of Goods Sold $1,400.00 $1,900.00 15 Merchandise Inventory $1,400.00 Purchase Returns and Allowances 16 38.00 Cash $1,862.00 17 18 Dec 11 Accounts Payable $1,900.00 Merchandise Inventory Dec 22 Cash $2,910.00 19 38.00 Sales Returns and Discounts $1,862.00 20 Cash 90.00 $3,000.00 21 Accounts Receivable 22 Dec 22 Cash $2,910.00 Sales Returns and Discounts $ Dec 31 Sales Returns and Discounts $5,000.00 23 90.00 Accounts Receivable Accounts Receivable $3,000.00 $5,000.00 24 25 26 Dec 31 Sales Returns and Discounts $5,000.00 Accounts Receivable $5,000.00 27 28