Question

Journalize the following transactions for Hannahs gift shop during June.

June 3: Purchased 7000 of inventory under terms of 2/10, n30 and FOB shipping point.

7: returned 1500 of defective merchandise purchased on June 3.

9: Paid freight bill of 300 on June 3 purchase.

10: sold inventory for 3200(cost2500) Payment terms were 2/15 n30

12: Paid amount owed on credit purchase of June 3, less the discount and the return.

16: The customer from the June 10 sale returned 800$ of merchandise(cost 625)

23: Received cash from June 10 customer in full settlement of her debt, less the allowance and the discount.

Answer 1

Note : Several companies have account numbers instead of account name which is well understood by accounting professionals

Date	Account	Debit	Credit
June 3	Merchandise Inventory	7000
	Accounts Payable		7000
To record Purchase of Inventory
June 7	Accounts Payable	1500
	Merchandise Inventory		1500
To record Returned Inventory
June 9	Transportation In	300
	Cash		300
To record shipping Bill
June 10	Account receivable	3200
	Sales Revenue		3200
To record the sales
June 10	Cost of Goods Sold	2500
	Merchandise Inventory		2500
To record COGS
June 12	Accounts Payable (7000-1500)	5500
	Merchandise Inventory (5500*2%)		110
	Cash (5500-110)		5390
To record cash paid and discount
June 16	Sales Returns and allowances	800
	Accounts receivable		800
June 16	Merchandise Inventory	625
	Cost of goods sold		625
To record Returned sales and COGS
June 23	Cash (3200-800)	2400
	Accounts Receivables		2400
To record Returned sales and COGS