The following are some inventory transactions for Moondog Co. for the quarter of Q2 2021:

1. June 1^st 2021. Moondog purchased merchandise with listed price of $4,000 on account from Bone Inc. Bone offered Moondog a volume discount of 10%. Moondog has 5/10, n/30 terms with Moina. Freight charges of $400 were paid in cash by Bone Inc.
2. June 19^th 2021. Moondog paid cash to Bone Inc. to settle the full amount owed for the purchase.
3. June 29^th 2021. Moondog returned some $1500 of purchases back to Bone Inc. and received a bank transfer the same day.

Prepare the necessary journal entries (including necessary adjusting entries) to record these transactions if Moondog uses a periodic inventory system and uses the gross method to account of cash discount received for purchases. Moondog prepares adjusting entries once every quarter at the end of March, June, September, and December. Include the dates of your journal entries.

Answer rating: 100% (QA)

Journal Entries Date General Journal Debit Credit Purchase400090400 Account... View the full answer