Question

Petersen Book Store entered into the transactions listed below. Prepare Petersen's necessary entries, assuming use of the perpetual inventory system July 6 Purchased $1.600 of merchandise on credit terms 1/30 Returned $100 of the items purchased on July 6 9 Paid freight charges of $90 on the items purchased July 6 19 Sold merchandise on credit for $4,400, terms 1/10, n/30. The merchandise had an inventory cost of $2,700 22 of the merchandise sold on July 19, $300 of it was returned. The items had cost the store $150.

Can somebody help me answer these? thanks!

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit (S) Credit (S) Jul.6 1,600.00 Merchandise Inventory Accounts Payable (To record Merchandise inventory purchased on account) 1,600.00 Jul.8 100.00 Accounts Payable Merchandise Inventory (To record merchandise inventory returned) 100.00 Jul.9 $ 90.00 Merchandise Inventory Cash (To record payment of Freight charges) 90.00 Jul.19 $ 4,400.00 Accounts Receivable Sales Revenue (To record Sales on account) $ 4,400.00 $ 2,700.00 Cost of Goods Sold Merchandise Inventory (To record Cost of Goods Sold) $ 2,700.00

Jul.22 300.00 Sales Returns and Allowances Accounts Receivable (To record Sales Returns) 300.00 150.00 Merchandise Inventory Cost of Goods Sold (To record cost of goods returned) 150.00 Jul.28 4,059.00 41.00 Cash Merchandise Inventory ($4100x1%) Accounts Receivable (To record Collection of receivables) $ 4,100.00 $ 1,500.00 Jul.31 |Accounts Payable ($1600-$100) Cash (To record payment of Payables) 1,500.00