Question

John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: John’s purchased merchandise on account for $6,000. Freight charges of $800 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,100 and John’s account was credited by the supplier. Merchandise costing $3,300 was sold for $6,200 in cash.

Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

		Debit	Credit
1	Inventory	6000
	Accounts Payable		6000
2	Inventory	800
	Cash		800
3	Accounts Payable	1100
	Inventory		1100
4	Cash	6200
	Sales Revenue		6200
5	Cost of Goods Sold	3300
	Inventory		3300