Following are the merchandising transactions for Dollar Store. Nov. 1 Dollar Sto
ID: 2330540 • Letter: F
Question
Following are the merchandising transactions for Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,988 on terms of 2/5, n/38, FOB shipping point, invoice dated November 1 5 Dollar Store pays cash for the November 1 purchase 7 Dollar Store discovers and returns $188 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund 18 Dollar Store pays $145 cash for transportation costs for the November 1 purchase 13 Dollar Store sells merchandise for $3,132 with terms n/30. The cost of the merchandise is $1,566 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 Jounalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method View transaction list Journal entry worksheet Dollar Store purchases merchandise for $2,900 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. Note: Enter debits before credits Date General Journal Debit Credit Nov 01 Record entry Clear entry View general journalExplanation / Answer
Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Nov Merchandise Inventory 2,900.00 Accounts Payable 2,900.00 (To record the purchase of inventory) 5-Nov Accounts Payable 2,900.00 Merchandise Inventory ($2,900 X 2%) 58.00 Cash ($2,900 X 98%) 2,842.00 (To record the cash paid) 7-Nov Cash ($100 X 98%) 98.00 Merchandise Inventory 98.00 (To record the defective inventory returned) 10-Nov Merchandise Inventory 145.00 Cash 145.00 (To record the cash paid for freight inwards) 13-Nov Accounts Receivable 3,132.00 Sales 3,132.00 (To record sales) 13-Nov Cost of Goods Sold 1,566.00 Merchandise Inventory 1,566.00 (To record the cost of goods sold) 16-Nov Sales Return & Allowances 255.00 Accounts Receivable 255.00 (To record the sales return) 16-Nov Merchandise Inventory 128.00 Cost of Goods Sold 128.00 (To record the cost of goods returned)