(Chapters 6-12)

Problem # 2:

Using Perpetual Inventory System, record the following

transactions in the general journal:

(No explanations are required.)

Feb. 1 - Purchased inventory worth $2,000.00 on account from Vendor A. Terms:

2/10, n/30; F.O.B. Destination, Freight Charges, $100.00

Feb. 3 - Purchased inventory worth $3,000.00 on account from Vendor B. Terms:

1/15, n/60; F.O.B. Shipping Point, Freight Charges, $100.00.

Feb. 4 - Returned $200.00 worth of defective inventory to Vendor B.

Feb. 5 - Purchased office supplies worth $500.00 on account from Vendor C.

Terms: 1/15/n/30; F.O.B. Destination, Delivery Charges, $50.00.

Feb. 7 - Sold inventory on account to Customer M. for $1,200.00. Terms:

1/10, n/30. Cost is $600.00.

Feb. 8 - Customer M returned $100.00 worth of inventory. Cost is $50.00.

Feb. 10 - Sold inventory on account to Customer N for $3,600.00. Terms 1/15,

n/30. Cost is $1,800.00.

Feb. 12 - Paid Vendor A on the purchased of Feb. 1.

Feb. 15 - Paid Vendor B on the purchased of Feb. 3.

Feb. 19 - Received from Customer M the full settlement of the account on the sale

of Feb. 7, less the return.

Feb. 25 - Received from Customer N the full settlement of the account on the sale

of Feb. 10.

Feb. 28 - Paid Vendor C on the purchased of Feb. 5.