$1-$ Midterm

Exercise $4-4($Algo$)$ Purchasing transactions LO P$1$

Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses a perpetual inventory system and the gross method,

March $3$ Purchased $$1,14$ of merchandise frow GreenWorld Cowpany with credit teres of $\frac{2}{15},$ n$/60,$ invoice dated March $3,$ and FOB shipping point.

March A Paid $$6\mathrm{.}5$ cash for shipping charges on the March $3$ purchase.

March $5$ Returned to Greenhordd unacceptable merchandise that had an invoice price of s$140.$

March $18$ Paid Greenworld for the March $3$ purchase, net of the discount and the returned werchandise.

March $19$ Purchased $5520$ of merchandise fraw PeopleFirst Corporation with credit tervs of $\frac{1}{10},$ n$/30,$ invoice dated March $19,$ and FDB destination.

Warch $21$ After negotiations, weiwed frow PeopleFirst a s$2$ allowance $($for scuffed Berchandise$)$ toward the s$520$ owled on the March $19$ purchase.

March $29$ Sent check to Peoplefirst aying form the March $19$ purchase, net of the allowance and the discount

Journal entry worksheet

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Purchased $$1,140$ of merchandise from Green World Company with credit terms of $\frac{2}{15},$ n$/69,$ involie dated March $3,$ and FOB, shipping point.

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