Following are the merchandising transactions for Dollar Store.

Nov.

1

Dollar Store purchases merchandise for $1,500 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 $75 cash for transportation costs for the November 1 purchase.

13

Dollar Store sells merchandise for $1,620 with terms n/30. The cost of the merchandise is $810.

16

Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $300 and cost $150; 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.

Question

Following are the merchandising transactions for Dollar Store.



Nov.
 
1
 
Dollar Store purchases merchandise for $1,500 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 $75 cash for transportation costs for the November 1 purchase.


 
 
13
 
Dollar Store sells merchandise for $1,620 with terms n/30. The cost of the merchandise is $810.


 
 
16
 
Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $300 and cost $150; 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.

Nov.	3	Purchased merchandise on account from Moonlight Co., list price$85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $37,680. The cost of the merchandisesold was $22,600.
	5	Purchased merchandise on account from Papoose Creek Co.,$47,500, terms FOB shipping point, 2/10, n/30, with prepaid freightof $810 added to the invoice.
	6	Returned $13,500 ($18,000 list price less trade discount of 25%)of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $15,600 with termsn/15. The cost of the merchandise sold was $9,400.
	13	Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6.
	14	Sold merchandise on VISA, $236,000. The cost of the merchandisesold was $140,000.
	15	Paid Papoose Creek Co. on account for purchase of November5.
	23	Received cash on account from sale of November 8 to QuinnCo.
	24	Sold merchandise on account to Rabel Co., $56,900, terms 1/10,n/30. The cost of the merchandise sold was $34,000.
	28	Paid VISA service fee of $3,540.
	30	Paid Quinn Co. a cash refund of $6,000 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,300.

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Unlock all answers

Related questions

Weekly leaderboard

Nov.	1	Dollar Store purchases merchandise for $1,500 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 $75 cash for transportation costs for the November 1 purchase.
	13	Dollar Store sells merchandise for $1,620 with terms n/30. The cost of the merchandise is $810.
	16	Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $300 and cost $150; the items were not damaged and were returned to inventory.