Question

E.8

$113,420 53,300 16,900 $62,170 $114,700 Goods purchase Merchandise available for sale Ending inventory Cost of goods sold $ 110,50 E85 Using perpetual inventory procedures, joumalize the following transactions for Jessica's Gift Shop for April. Assume Jessica uses the net price method of recording merchandise purchases. Jessica purchased $20,500 of merchandise from Parker Company; terms 2/10, n/30. April 8 Jessica returned $1,200 of damaged merchandise purchased on April 4 to Parker Company and Parker Company will decrease Jessica's bill accordingly. Jessica paid Parker Company for the purchase and took advantage of the cash April 12 discount. 58.6 Refer to E8.5. Make the journal entries assuming Jessica uses the gross price method. E8.7 Refer to E8.5. Make the journal entries assuming Jessica uses a periodic inventory system and the net price method. CE8.8 Refer to E8.5 and E8.6. Make the journal entries assuming Jessica uses a periodic system and the gross price method. forrira uses perpetual procedures and the net price method,

Answer 1

E8.8)

Periodic under Gross Method:

Date	Account Titles and Explanations	Debit	Credit
Apri. 4	Purchases	$20,500
	Accounts Payable - Parker Company		$20,500
	(To record the purchase of merchandise inventory on account)
Apri. 8	Accounts Payable - Parker Company	$1,200
	Purchase returns		$1,200
	(To record the return of merchandise inventory purchased on account)
Apri. 12	Accounts Payable - Parker Company ($20,500 - $1,200)	$19,300
	Purchase Discount ($19,300*2/100)		$386
	Cash ($19,300 - $386)		$18,914
	(To record the payment for the credit purchase along with receipt of discount)