Question: I need help with this please! The answer is NOT 4,000 Peaceful Palace Gift Shop uses a perpetual inventory system. Journalize the following transactions for

I need help with this please! The answer is NOT 4,000

I need help with this please! The answer is NOT 4,000 PeacefulPalace Gift Shop uses a perpetual inventory system. Journalize the following transactions

Peaceful Palace Gift Shop uses a perpetual inventory system. Journalize the following transactions for Peaceful Palace Gift Shop. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount. Round all numbers to the nearest whole dollar.) (Click the icon to view the transactions.) Feb. 7: Returned $500 of defective merchandise purchased on February 3. Feb. 9: Paid freight bill of $600 on February 3 purchase. Feb. 10: Sold merchandise inventory on account for $4,000 to Triton Wellness. Payment terms were 1/15,n/30. These goods cost the company $2,000. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Feb. 3 Purchased $3,700 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Sharon's Creations. Feb. 7 Returned $500 of defective merchandise purchased on February 3. Feb. 9 Paid freight bill of $600 on February 3 purchase. Feb. 10 Sold merchandise inventory on account for $4,000 to Triton Wellness. Payment terms were 1/15,n/30. These goods cost the company $2,000. Feb. 12 Paid amount owed on credit purchase of February 3, less the return and the discount. Feb. 28 Received cash from Triton Wellness in full settlement of their debt

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!