Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses...

 

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Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses a perpetual inventory system and the gross method. March 3 Purchased $1,290 of merchandise from GreenWorld Company with credit terms of 2/15, n/60, invoice dated March 3, and FOB shipping point. March 4 Paid $85 cash for shipping charges on the March 3 purchase. March 5 Returned to GreenWorld unacceptable merchandise that had an invoice price of $140. March 18 Paid Greenworld for the March 3 purchase, net of the discount and the returned merchandise. March 19 Purchased $838 of merchandise from PeopleFirst Corporation with credit terms of 1/10, n/30, invoices dated March 19, and F08 destination. March 21 After negotiations, received from PeopleFirst a $30 allowance (for scuffed merchandise) toward the $830 awed on the March 19 purchase. March 29 Sent check to PeopleFirst paying for the March 19 purchase, net of the allowance and the discount. View transaction list Journal entry worksheet 6 Note: Enter debits before credits. 7 Purchased $1,290 of merchandise from GreenWorld Company with credit terms of 2/15, n/60, invoice dated March 3, and FOB shipping point. Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses a perpetual inventory system and the gross method. March 3 Purchased $1,290 of merchandise from GreenWorld Company with credit terms of 2/15, n/60, invoice dated March 3, and FOB shipping point. March 4 Paid $85 cash for shipping charges on the March 3 purchase. March 5 Returned to GreenWorld unacceptable merchandise that had an invoice price of $140. March 18 Paid Greenworld for the March 3 purchase, net of the discount and the returned merchandise. March 19 Purchased $838 of merchandise from PeopleFirst Corporation with credit terms of 1/10, n/30, invoices dated March 19, and F08 destination. March 21 After negotiations, received from PeopleFirst a $30 allowance (for scuffed merchandise) toward the $830 awed on the March 19 purchase. March 29 Sent check to PeopleFirst paying for the March 19 purchase, net of the allowance and the discount. View transaction list Journal entry worksheet 6 Note: Enter debits before credits. 7 Purchased $1,290 of merchandise from GreenWorld Company with credit terms of 2/15, n/60, invoice dated March 3, and FOB shipping point.

Answer rating: 100% (QA)

SOLUTION The journal entries to record the transactions of Recycled Fashion retail store are as foll... View the full answer