We will use Problem 15B-1 to illustrate the journal entries involved with the perpetual inventory system.

Transactions for March:

15-Purchased merchandise on acct. totaling $1,800, terms n/30.

16- Sold merchandise costing $71 on acct. for $92 to B. Hackett. 18- Returned $120 of defective merchandise purchased Mar. 15.

19- Sold $230 of merchandise for cash. It costs $175.

19- Allowed merchandise sold on Mar. 16 return for credit -$14. It costs $11.

20- Bought $900 merchandise on acct. from JT Supply; terms n/30.

22- Received pmt from B. Hackett for Mar. 16 sale less return.

23- Sold $410 of merchandise costing $320 for cash