Question

Refer to Exercise and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used.
In Exercise, Journalize the following merchandising transactions for Chiller Systems assuming it uses a perpetual inventory system.
1. On November 1, Chiller Systems purchases merchandise for $2,800 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1.
2. On November 5, Chiller Systems pays cash for the November 1 purchase.
3. On November 7, Chiller Systems discovers and returns $100 of defective merchandise purchased on November 1 for a cash refund.
4. On November 10, Chiller Systems pays $140 cash for transportation costs with the November 1 purchase.
5. On November 13, Chiller Systems sells merchandise for $3,024 on credit. The cost of the merchandise is $1,512.
6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $205 and cost $115.


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  • CreatedMarch 18, 2015
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