Prepare journal entries to record each of the following transactions of a merchandising company. The company...

 

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Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. November 5 Purchased 1,500 units of product at a cost of $40 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November 5. November 7 Returned 35 defective units from the November 5 purchase and received full credit. November 15 Paid the amount due from the November 5 purchase, minus the return on November 7. View transaction list View journal entry worksheet No Date General Journal 1 November 05 Merchandise inventory Accounts payable 2 November 07 Accounts payable Merchandise inventory ' 3 November 15 Accounts payable Merchandise inventory Cash Debit Credit 60,000 60,000 Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. November 5 Purchased 1,500 units of product at a cost of $40 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November 5. November 7 Returned 35 defective units from the November 5 purchase and received full credit. November 15 Paid the amount due from the November 5 purchase, minus the return on November 7. View transaction list View journal entry worksheet No Date General Journal 1 November 05 Merchandise inventory Accounts payable 2 November 07 Accounts payable Merchandise inventory ' 3 November 15 Accounts payable Merchandise inventory Cash Debit Credit 60,000 60,000