Prepare journal entries for the following merchandising transactions assuming: A. A perpetual inventory system, and B.,...

 

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Prepare journal entries for the following merchandising transactions assuming: A. A perpetual inventory system, and B., a periodic system. a) Nov 1 Purchased merchandise from Costmore Ltd. for $3,000 on credit with terms of 1/10. n/30, FOB shipping point. Paid $200 for shipping charges for the purchase of Nov 1. b) Nov 3 c) Nov 10 Paid Costmore Ltd. for the merchandise purchased on Nov 1 d) Nov 11 Returned 10% of the merchandise to Costmore Ltd. from the Nov 1 purchase Nov 13 Sold merchandise to Cedar Inc. for $2,000 on account (cost of the merchandise was $750) terms 2/15, n/60 FOB destination e) Paid the $50 transportation charges to deliver the merchandise sold to Cedar Inc Cedar Inc returned an item from the November 13 sale. The item had sold for $200 and cost $75.The item is damaged and will not be returned to inventory Cedar Inc. received a price reduction of $100 regarding the November 13 sale. Cedar Inc. paid the balance due from sale on November 13. B. A periodic inventory system Nov 14 g) Nov 16 h) Nov 20 i) Nov 27 A. A perpetual inventory system Nov 1 Nov 3 Nov 10 Nov 11 Nov 13 Nov 14 Nov 16 Nov 20 Nov 27 Prepare journal entries for the following merchandising transactions assuming: A. A perpetual inventory system, and B., a periodic system. a) Nov 1 Purchased merchandise from Costmore Ltd. for $3,000 on credit with terms of 1/10. n/30, FOB shipping point. Paid $200 for shipping charges for the purchase of Nov 1. b) Nov 3 c) Nov 10 Paid Costmore Ltd. for the merchandise purchased on Nov 1 d) Nov 11 Returned 10% of the merchandise to Costmore Ltd. from the Nov 1 purchase Nov 13 Sold merchandise to Cedar Inc. for $2,000 on account (cost of the merchandise was $750) terms 2/15, n/60 FOB destination e) Paid the $50 transportation charges to deliver the merchandise sold to Cedar Inc Cedar Inc returned an item from the November 13 sale. The item had sold for $200 and cost $75.The item is damaged and will not be returned to inventory Cedar Inc. received a price reduction of $100 regarding the November 13 sale. Cedar Inc. paid the balance due from sale on November 13. B. A periodic inventory system Nov 14 g) Nov 16 h) Nov 20 i) Nov 27 A. A perpetual inventory system Nov 1 Nov 3 Nov 10 Nov 11 Nov 13 Nov 14 Nov 16 Nov 20 Nov 27