Exercise 4-12 (Algo) Recording purchases, sales, returns, and shipping LO P1, P2Following are the merchandising transactions of Dollar Store. November 1Dollar Store purchases merchandise for $1,700 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.November 5Dollar Store pays cash for the November 1 purchase.November 7Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.November 10Dollar Store pays $85 cash for transportation costs for the November 1 purchase.November 13Dollar Store sells merchandise for $1,836 with terms n/30. The cost of the merchandise is $918.November 16Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $210 and cost $105; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method. •View transaction listNo123457DateNov 01Nov 05Nov 07Nov 10Nov 13Nov 16View journal entry worksheetMerchandise inventoryAccounts payableAccounts payableCashMerchandise inventoryCashGeneral JournalAccounts receivablePurchases returns and allowancesAccounts receivableMerchandise inventoryDebit1,7001,70019685Credit1,70085

Name: Exercise 4-12 (Algo) Recording purchases, sales, returns, and shipping
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Description: Exercise 4-12 (Algo) Recording purchases, sales, returns, and shipping LO P1, P2Following are the merchandising transactions of Dollar Store. November 1Dollar Store purchases merchandise for $1,700 on terms of 2/5, n/30, FOB shipping point, invoice d

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: Exercise 4-12 (Algo) Recording…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 4-12 (Algo) Recording purchases, sales, returns, and shipping LO P1, P2

Following are the merchandising transactions of Dollar Store.

November 1	Dollar Store purchases merchandise for $1,700 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
November 5	Dollar Store pays cash for the November 1 purchase.
November 7	Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.
November 10	Dollar Store pays $85 cash for transportation costs for the November 1 purchase.
November 13	Dollar Store sells merchandise for $1,836 with terms n/30. The cost of the merchandise is $918.
November 16	Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $210 and cost $105; the items were not damaged and were returned to inventory.

Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.

•
View transaction list
No
1
2
3
4
5
7
Date
Nov 01
Nov 05
Nov 07
Nov 10
Nov 13
Nov 16
View journal entry worksheet
Merchandise inventory
Accounts payable
Accounts payable
Cash
Merchandise inventory
Cash
General Journal
Accounts receivable
Purchases returns and allowances
Accounts receivable
Merchandise inventory
Debit
1,700
1,700
196
85
Credit
1,700
85

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