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 $2,100 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. Dollar Store pays $105 cash for transportation costs for the November 1 purchase. November 10 November 13 Dollar Store sells merchandise for $2,268 with terms n/30. The cost of the merchandise is $1,134. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $280 and cost $140; 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 Journal entry worksheet < 1 2 3 4 Date Nov 01 Note: Enter debits before credits. 5 Dollar Store purchases merchandise for $2,100 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 6 7 General Journal 8 Debit < Prev Credit 7 of 8 > Next >
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 $2,100 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. Dollar Store pays $105 cash for transportation costs for the November 1 purchase. November 10 November 13 Dollar Store sells merchandise for $2,268 with terms n/30. The cost of the merchandise is $1,134. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $280 and cost $140; 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 Journal entry worksheet < 1 2 3 4 Date Nov 01 Note: Enter debits before credits. 5 Dollar Store purchases merchandise for $2,100 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 6 7 General Journal 8 Debit < Prev Credit 7 of 8 > Next >
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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 $2,100 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 $105 cash for transportation costs for the November 1 purchase.
November 13 Dollar Store sells merchandise for $2,268 with terms n/30. The cost of the merchandise is $1,134.
November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced
at $280 and cost $140; 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
Journal entry worksheet
<
1
2
Note: Enter debits before credits.
Date
Nov 01
LO
6
Dollar Store purchases merchandise for $2,100 on terms of 2/5, n/30, FOB
shipping point, invoice dated November 1.
General Journal
7
5.0
Debit
< Prev
Credit
7 of 8
Air
Next >
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