3. Accounting For Merchandise Business The Following transactions were completed by KarenMilen Company during June of the current year. This company uses perpetual inventory system. Date Transactions Purchased Merchandise on Account from Flower Co. $5,000. terms FOB Shiping point, 2/10n/30, with prepaid freight $180 added to the invoice. Puurchased merchandise on account form Carmen Co. $9.500 terms FOB destinations 1/10 n/30 6 Sold Merchandise on account to Howard Co. List Price $5,000, trade discount 30%, terms 2/10, n/30. The cost of the merchandise sold was $1,500 Purchased office supplies for cash $ 350 Returned merchandise purchased from Carmen Co. $1,250 Paid Flower Co. on account for purchased on June 3, less discount Purchased merchandise for cash $10,500 June 3 5 10 13 14 15 Paid Carmen Co. on account for purchase of June 5. less return of June 10 and discount Received cash on account from sale of June 6 to Howard Co, less discount Sold merchandise on Visa credit cards $2,650 . The Cost of the merchandise sold was $980 Sold merchandise on account to Smart Co $3,550 terms 2/10 n/30. The cost of the merchandise sold was $1.800 Sold merchandise for cash $4,650. The cost of the merchandise sold was $ 1,750 Received merchandise returned by Smart Co from sale on June 22, $1,550. The cost of returned merchandise was $750 Paid a service processing fee of $250 for Visa sales 16 19 22 24 25 31 Instructions: a. Journalize the preceding transactions b. Journalize the adjusting entry for merchandisc inventory shrinkage $ 3,950.

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3. Accounting For Merchandise Business
The Following transactions were completed by KarenMilen Company during June of the current year. This company uses perpetual
inventory system.
Date
June 3 Purchased Merchandise on Account from Flower Co. $5,000. terms FOB Shiping point, 2/10n/30, with
Transactions
prepaid freight $180 added to the invoice.
Puurchased merchandise on account form Carmen Co. $9,500 terms FOB destinations 1/10 n/30
5
6.
Sold Merchandise on account to Howard Co. List Price $5,000, trade discount 30%, terms 2/10, n/30. The
cost of the merchandise sold was $1,500
Purchased office supplies for cash $ 350
Returned merchandise purchased from Carmen Co. $1,250
Paid Flower Co. on account for purchased on June 3, less discount
Purchased merchandise for cash $10,500
Paid Carmen Co. on account for purchase of June 5. less return of June 10 and discount
Received cash on account from sale of June 6 to Howard Co, less discount
19
8
10
13
14
15
16
Sold merchandise on Visa credit cards $2,650 . The Cost of the merchandise sold was $980
22
Sold merchandise on account to Smart Co $3,550 terms 2/10 n/30. The cost of the merchandise sold was
$1.800
24
Sold merchandise for cash $4,650. The cost of the merchandise sold was $ 1,750
Received merchandise returned by Smart Co from sale on June 22, $1,550. The cost of returned
merchandise was $750
31
25
Paid a service processing fee of $250 for Visa sales
Instructions:
a. Journalize the preceding transactions
b. Journalize the adjusting entry for merchandise inventory shrinkage $ 3,950.
Transcribed Image Text:3. Accounting For Merchandise Business The Following transactions were completed by KarenMilen Company during June of the current year. This company uses perpetual inventory system. Date June 3 Purchased Merchandise on Account from Flower Co. $5,000. terms FOB Shiping point, 2/10n/30, with Transactions prepaid freight $180 added to the invoice. Puurchased merchandise on account form Carmen Co. $9,500 terms FOB destinations 1/10 n/30 5 6. Sold Merchandise on account to Howard Co. List Price $5,000, trade discount 30%, terms 2/10, n/30. The cost of the merchandise sold was $1,500 Purchased office supplies for cash $ 350 Returned merchandise purchased from Carmen Co. $1,250 Paid Flower Co. on account for purchased on June 3, less discount Purchased merchandise for cash $10,500 Paid Carmen Co. on account for purchase of June 5. less return of June 10 and discount Received cash on account from sale of June 6 to Howard Co, less discount 19 8 10 13 14 15 16 Sold merchandise on Visa credit cards $2,650 . The Cost of the merchandise sold was $980 22 Sold merchandise on account to Smart Co $3,550 terms 2/10 n/30. The cost of the merchandise sold was $1.800 24 Sold merchandise for cash $4,650. The cost of the merchandise sold was $ 1,750 Received merchandise returned by Smart Co from sale on June 22, $1,550. The cost of returned merchandise was $750 31 25 Paid a service processing fee of $250 for Visa sales Instructions: a. Journalize the preceding transactions b. Journalize the adjusting entry for merchandise inventory shrinkage $ 3,950.
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