Exercise $5-12($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 $$2,200$ on terms of $2/5,$ 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 $$150$ of defective merchandise purchased on November $1,$ and

paid for on November $5,$ for a cash refund.

November $10$ Dollar Store pays $$110$ cash for transportation costs for the November $1$ purchase.

November $13$ Dollar Store sells merchandise for $$2,376$ with terms $\frac{n}{30}.$ The cost of the merchandise is $$1,188.$

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

are priced at $$265$ and cost $$133$; 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