Question

A company has the following transactions during March:

March 3 Purchases inventory on account for $3,900, terms 4 / 10, n / 30.

March 5 Pays freight costs of $230 on inventory purchased on March 3 . March 6 Returns inventory with a cost of $700 .

March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for

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

ANSWER:

Date	Account title	Debit ($)	Credit ($)
March 3	purchases Accounts payable	3900 .	. 3900
March 5	freight in Cash	230 .	. 230
March 6	Accounts payable Purchase return & allowances	700 .	. 700
March 12	Accounts payable (3900 - 700) Purchases discount (3200 x 4%) Cash	3200 . .	. 128 3072
March 29	Accounts receivable Sales revenue	5600 .	. 5600
March 31	cost of goods sold Merchandise inventory	3072 .	. 3072