Question

John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018: 1. John's purchased merchandise on account for $5,100. Freight charges of $350 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $650 and John's account was credited by the supplier. 3. Merchandise costing $2,850 was sold for $5,300 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.) General Journal Credit No 1 Transaction 01 Debit 5,100 Purchases Accounts payable 5,100 350 Freight-in Cash 350 650 Accounts payable Purchase returns 650 5,300 Accounts receivable Sales revenue 5,300 2,800 03 Cost of goods sold Inventory *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted 2,800

Answer 1

No.	transactions	general journal	debit	credit
4	03	cash Sales revenue	$5300 .	. $5300
5	03	cost of goods sold Merchandise inventory	$2850 .	. $2850