A company had the following related transactions:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company had the following related transactions:
Purchased merchandise on account from Blitzen Co., list price $20,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of $650 added to the invoice.
Purchased merchandise on account from Cupid Co., $8,000, terms FOB destination, 1/10, n/30.
Sold merchandise on account to Donner Co., $9,800, terms 2/10, n/30. The cost of the merchandise sold was $5,800.
Returned $2,000 of merchandise purchased from Cupid Co.
Paid Blitzen Co in full within credit term.
Received merchandise returned by Donner Co. from sale, $1,800. The cost of the merchandise returned was $1,080.
Paid Cupid Co in full within credit term.
Received cash on account from Donner Co.
Perpetual inventory records indicate that $85,000 of merchandise should be on hand. The physical inventory indicates that $81,350 of merchandise is on hand.
Required:
Prepare the general journal entries to record these transactions using a perpetual inventory system.
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