Question

 A company has the following transactions during March:

 March 3 Purchases inventory on account for $3,300, terms 3/10, n/30.

 March 5 Pays freight costs of $210 on inventory purchased on March 3.

 March 6 Returns inventory with a cost of $300.

 March 12 Pays the full amount due on March 3 purchase.

 March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for $5,500 on account.

 Record all transactions, including the month-end adjustment to cost of goods sold, assuming the company uses a periodic inventory system and has no beginning inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

	Date	Account title and explanation	Debit	Credit
1	Mar 3	Purchases	$3,300
		Accounts payable		$3,300
		[To record credit purchases]
2	Mar 5	Freight in	$210
		Cash		$210
		[To record payment of freight on purchases]
3	Mar 6	Accounts payable	$300
		Purchase returns and allowance		$300
		[To record purchase returns]
4	Mar 12	Accounts payable [3300-300]	$3,000
		Purchase discount [3000 x 3%]		$90
		Cash		$2,910
		[To record cash paid for accounts payable]
5	Mar 29	Accounts receivable	$5,500
		Sales revenue		$5,500
		[To record credit sales]
6	Mar 31	Cost of goods sold	$3,210
		Merchandise Inventory		$3,210
		[To record cost of goods sold]

Calculations:

Beginning inventory		$0
Purchases	$3,300
Freight-in	$210
Purchase returns	($300)
Net purchases		$3,210
(Less): Ending inventory		$0
Cost of goods sold		$3,210