Following are the merchandising transactions for Chilton Systems. 1. On November 1, Chilton Systems purchases merchandise for
Question:
Following are the merchandising transactions for Chilton Systems. |
1. | On November 1, Chilton Systems purchases merchandise for $2,300 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 $140 of defective merchandise purchased on November 1 for a cash refund. |
4. | On November 10, Chilton Systems pays $115 cash for transportation costs with the November 1 purchase. |
5. | On November 13, Chilton Systems sells merchandise for $2,484 on credit. The cost of the merchandise is $1,242. |
6. | On November 16, the customer returns merchandise from the November 13 transaction. The returned items are priced at $275 and cost $138; the items were not damaged and were returned to inventory. |
Journalize the above merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system. |
Horngrens Financial and Managerial Accounting The Financial Chapters
ISBN: 978-0134486857
6th edition
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura