Calming Creations Gift Shop uses a perpetual inventory system. Joumalize the fol

Question

Calming Creations Gift Shop uses a perpetual inventory system. Joumalize the following transactions for Calming Creations Gift Shop. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount. Round all numbers to the nearest shele dollar. (Click the icon to view the transactions.) Feb. 3: Purchased $3,100 of merchandise inventory on account under terms 2/10, n/EOM and FOB shipping point. Date Accounts Debit Credit Feb. 3 Feb. 7: Returned $800 of defective merchandise purchased on February 3. Date Accounts Debit Credit Feb. 7 Feb. 9: Paid freight bill of $600 on February 3 purchase. Date Accounts Debit Credit Feb. 9

Explanation / Answer

Journal Entries

DATE PARTICULAR DR CR Feb 3 Merchandise Inventory 3100 Accounts Payable 3100 Feb 7 Accounts Payable 800 Merchandise Inventory 800 Feb 9 Freight In 600 cash 600 Feb 10 Accounts Receivable 4800 Sales Revenue 4800 Cost of Goods Sold 2400 Merchandise Inventory 2400 Feb 12 Accounts Payable 2300 Merchandise Inventory 69 Cash 2231 (Discount = 2300 x 3 %) Feb 28 Cash 4116 Sale discount 84 Accounts Receivable 4200 (Sales Discount = 4200 x 2 %)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.