Question

Following are the merchandising transactions of Dollar Store.

Nov.		1		Dollar Store purchases merchandise for $2,700 on terms of 2/5, n/30, FOB shipping point, invoice 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 $135 cash for transportation costs for the November 1 purchase.
		13		Dollar Store sells merchandise for $2,916 with terms n/30. The cost of the merchandise is $1,458.
		16		Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $255 and cost $128; the items were not damaged and were returned to inventory.

Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.

Answer 1