Problem

Journalizing purchase and sale transactions perpetual inventory [20-25 min]Consider the fo...

Journalizing purchase and sale transactions perpetual inventory [20-25 min]

Consider the following transactions that occurred in February 2012 for Gems, Inc.

Feb 3

Purchased inventory on terms 1/5, n/eom, $2,000.

4

Purchased inventory for cash of $1,600.

6

Returned $600 of inventory from February 4 purchase.

8

Sold goods on terms of 2/15, n/35 of $7,000 that cost $3,500.

10

Paid for goods purchased on February 3.

12

Received goods from February 8 sale of $500 that cost $190.

23

Received payment from February 8 customer.

25

Sold goods to Farms for $900 that cost $350. Terms of n/30 were offered. As a courtesy to Farms, $75 of freight was added to the invoice for which cash was paid directly to UPS by Gems, Inc.

29

Received payment from Farms.

Requirement

1. Journalize February transactions for Gems, Inc. No explanations are required.

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