Question

Journalize the following merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system.
1. On November 1, Chilton Systems purchases merchandise for $ 1,500 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1.
2. On November 5, Chilton Systems pays cash for the November 1 purchase.
3. On November 7, Chilton Systems discovers and returns $ 200 of defective merchandise purchased on November 1 for a cash refund.
4. On November 10, Chilton Systems pays $ 90 cash for transportation costs with the November 1 purchase.
5. On November 13, Chilton Systems sells merchandise for $ 1,600 on credit. The cost of the merchandise is $ 800.
6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $ 300 and cost $ 130. The merchandise is returned to inventory.



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  • CreatedNovember 26, 2013
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