Question

John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $6,300. Freight charges of $950 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,250 and John's account was credited by the supplier. 3. Merchandise costing $3,450 was sold for $6,500 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.)

Answer 1

Account Titles and Explanation Credit Debit Date Inventory 6,300 $ la Accounts Payable 6,300 Freight 1b 950 $ Cash 950 Accounts Payable 02 1,250 Purchase returns and allowances 1,250 Cash За 6,500 $ Sales revenue 130 Cost of goods sold 3b 3,450 Inventory 3,450

Answer 2

5.) NO JOURNAL ENTRY REQUIRED