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Question 16 (1 point) Account titles available for use: Cash Purchases Purchase Returns Cost of Goods Sold Accounts Receivable Purchase Allowances Sales Revenue Freight Expense Accounts Payable Purchase Discounts Sales Returns Interest Expense Inventory Supplies Freight-In Loss from Inventory Shrinkage Record the following transaction using the perpetual method For account titles use the account names listed above (be cautious about spelling as this can return an incorrect answer). For transaction amounts do not use "$" or commas in your answer. For compound entries list the larger debits and credits first. Accepted a return of merchandise which was the wrong color for the customer. We had sold the merchandise for $72, our cost was $56. DR ACCT A DR amount CR ACCT ACR amount DR ACCT A DR amount CR ACCT A CR amount Paid the supplier the amount owed. DR ACCT DR amount CR ACCT A CR amount Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer. DR ACCT A DR amount CR ACCT A CR amount DR ACCT A DR amount CR ACCT A CR amount DR ACCT A DR amount CR ACCT A CR amount Received a check for the Smith June 7 sale. DR ACCT DR amount CR ACCT CR amount Gnu Company uses the perpetual method of recording inventory. Its records show Inventory on hand of $15,889. A count of the inventory, however, finds only $14,278 of inventory on hand. Record the entry needed by Gnu to correct its records. DR ACCT DR amount CR ACCT CR amount George, Inc. uses the perpetual method of recording inventory. Its records show Inventory on hand of $105,773. A count of the inventory, however, finds only $98,200 of inventory on hand. Record the entry needed by George to correct its records. Assume an amount over 5% of total inventory would be considered material. DR ACCT A DR amount CR ACCT A, CR amount Harry and Sally own a clothing store. Vendors offer discounts on many of the store's purchases, and the owners are curious about whether to use the net or gross method of recording these purchases. They use the perpetual inventory system and want you to show them how to account for merchandise that has discounts available for early payment. Provide journal entries to record each activity for both the gross and net methods as specified below. Purchased merchandise invoiced at $7,600, with terms of 2/10, n/30. Record using gross. DR ACCT A DR amount CR ACCT A CR amount Harry and Sally own a clothing store. Vendors offer discounts on many of the store's purchases, and the owners are curious about whether to use the net or gross method of recording these purchases. They use the perpetual inventory system and want you to show them how to account for merchandise that has discounts available for early payment. Provide ournal entries to record each activity for both the gross and net methods as specified below. Returned merchandise with an invoiced amount of $700 because it was defective. Record using gross. (Note: Refers to previous transaction) DR ACCT A DR amount CR ACCT A CR amount Harry and Sally own a clothing store. Vendors offer discounts on many of the store's purchases, and the owners are curious about whether to use the net or gross method of recording these purchases. They use the perpetual inventory system and want you to show them how to account for merchandise that has discounts available for early payment. Provide journal entries to record each activity for both the gross and net methods as specified below Paid for merchandise with an invoice price of $5,000. Record using gross. (Note: Refers to previous two transactions) DR ACC DR amount CR ACCT CR amount Harry and Sally own a clothing store. Vendors offer discounts on many of the store's purchases, and the owners are curious about whether to use the net or gross method of recording these purchases. They use the perpetual inventory system and want you to show them how to account for merchandise that has discounts available for early payment. Provide journal entries to record each activity for both the gross and net methods as specified below. Paid the remainder owed on the invoice. Record using gross. (Note: Refers to previous three transactions) DR ACCT A DR amount CR ACCT A CR amount Harry and Sally own a clothing store. Vendors offer discounts on many of the store's purchases, and the owners are curious about whether to use the net or gross method of recording these purchases. They use the perpetual inventory system and want you to show them how to account for merchandise that has discounts available for early payment. Provide ournal entries to record each activity for both the gross and net methods as specified below. Purchased merchandise invoiced at $7,600, with terms of 2/10, n/30. Record using net. DR ACCT DR amount CR ACCT ACR amount Harry and Sally own a clothing store. Vendors offer discounts on many of the stores purchases, and the owners are curious about whether to use the net or gross method of recording these purchases. They use the perpetual inventory system and want you to show them how to account for merchandise that has discounts available for early payment. Provide ournal entries to record each activity for both the gross and net methods as specified below. Returned merchandise with an invoiced amount of $700 because it was defective. Record using net. (Note: Refers to previous transaction) DR ACCT DR amount CR ACCT CR amount Harry and Sally own a clothing store. Vendors offer discounts on many of the store's purchases, and the owners are curious about whether to use the net or gross method of recording these purchases. They use the perpetual inventory system and want you to show them how to account for merchandise that has discounts available for early payment. Provide ournal entries to record each activity for both the gross and net methods as specified below. Paid the remainder owed on the invoice. Record using the net method. (Note: Refers to the three previous transactions) DR ACCT A DR amount DR ACCT A DR amount CR ACCT CR amount