Consider the following transactions for Burlington Drug Store: (Click the icon t

Question

Consider the following transactions for Burlington Drug Store: (Click the icon to view the transactions.) Requirements 2. In the final analysis, how much did the inventory cost Burington Drug Store? Requirement 1. Journaliza the purchase transactions. Explanations are not required. (Assume the company uses a perpetual inventory system. Round the answers to the nearest whole dolar. Record debits first, then credits. Exclude explanations from journal Jounalize the purchase transactions. Explanations are not required. entries.) Feb. 2: Burlington buys $23,800 worth of inventory on account with credit terms of 215, n/30, FOB shipping poin Date Accounts Debit Credit More Info Feb. 2 Feb. 2 Burlington buys S23.800 worth of inventory on account with credit terme of 2 / 15, n / 30. FOB shipping point. 4 Burlington pays a S50 freight charga. 9 Burlington returns $5,200 of the merchandise due to damage during shipment. 14 Burlington paid the amount due, less recurn and discount Print Done

Explanation / Answer

Journal entry :

Inventory cost = 23800+50-5200-372 = $18278

Date account and explanation debit credit Feb 2 Merchandise inventory 23800 Account payable 23800 Feb 4 Merchandise inventory 50 Cash 50 Feb 9 Account payable 5200 Merchandise inventory 5200 Feb 14 Account payable (23800-5200) 18600 Cash (18600*98%) 18228 Merchandise inventory 372

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