The following transactions occurred between Retro Furniture and E & S Furniture Warehouse during October of the current year:
Oct 4 Retro Furniture purchased $8,000 of merchandise from E & S Furniture Warehouse on account, terms 1/15, n/30. FOB shipping point.
The goods cost E & S Furniture Warehouse $2,900.
7 Retro Furniture paid a $200 freight bill for delivery of the goods purchased on October 4.
10 Retro Furniture returned $1,000 of the merchandise purchased on October 4.
The goods cost E & S Furniture Warehouse $450.
18 Retro Furniture paid $2,000 of the October 4 invoice less the discount.
31 Retro Furniture paid the remaining amount owed on the October 4 invoice.
Requirements
Journalize all necessary transactions for Retro Furniture, using
(a) The perpetual inventory system
(b) The periodic inventory system