Exercise $4-12($Algo$)$ Recording purchases, sales, returns, and shipping LO P$1,$ P$2$

Following are the merchandising transactions of Dollar Store.

November $1$ Dollar Store purchases merchandise for $$1,300$ on terms of $\frac{2}{5},\frac{n}{30},$ FOB shipping point, invoice dated

November $1.$

November $5$ Dollar Store pays cash for the November $1$ purchase.

November $7$ Dollar Store discovers and returns $$200$ of defective merchandise purchased on November $1,$ and paid for on

November $5,$ for a cash refund.

November $10$ Dollar Store pays $$65$ cash for transportation costs for the November $1$ purchase.

November $13$ Dollar Store sells merchandise for $$1,404$ with terms $\frac{n}{30}.$ The cost of the merchandise is $$702.$

November $16$ Merchandise is returned to the Dollar Store from the November $13$ transaction. The returned items are priced

at $$270$ and cost $$135$; the items were not damaged and were returned to inventory.

Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross

method.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

Dollar Store purchases merchandise for $$1,300$ on terms of $\frac{2}{5},\frac{n}{30},$ FOB

shipping point, invoice dated November $1.$

Note: Enter debits before credits.