Refer to Exercise and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used.
In Exercise, Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system.
Apr. 2 Purchased merchandise from Johns Company under the following terms: $5,900 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
3 Paid $330 for shipping charges on the April 2 purchase.
4 Returned to Johns Company unacceptable merchandise that had an invoice price of $900.
17 Sent a check to Johns Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased merchandise from William Corp. under the following terms: $12,250 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.
21 After negotiations, received from William a $3,250 allowance on the April 18 purchase.
28 Sent check to William paying for the April 18 purchase, net of the discount and allowance.