Exercise 5-12 (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 $2,50e on terms of 2/5, n/30, FOB shipping point, invoice date 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 November 5, for a cash refund. November 10 Dollar Store pays $125 cash for transportation costs for the November 1 purchase. November 13 Dollar Store sells merchandise for $2,700 with terms n/30. The cost of the merchandise is $1,350. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are pri at $245 and cost $123; 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 Dollar Store purchases merchandise for $2,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 2 3 Note: Enter debits before credits. 4 5 6 7 8
Exercise 5-12 (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 $2,50e on terms of 2/5, n/30, FOB shipping point, invoice date 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 November 5, for a cash refund. November 10 Dollar Store pays $125 cash for transportation costs for the November 1 purchase. November 13 Dollar Store sells merchandise for $2,700 with terms n/30. The cost of the merchandise is $1,350. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are pri at $245 and cost $123; 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 Dollar Store purchases merchandise for $2,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 2 3 Note: Enter debits before credits. 4 5 6 7 8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
answer in text form please (without image), Note: .Every entry should have narration please
![**Exercise 5-12 (Algo) Recording Purchases, Sales, Returns, and Shipping**
**Objective:** Learn to journalize merchandising transactions using a perpetual inventory system and the gross method.
**Transactions:**
- **November 1**: Dollar Store purchases merchandise for $2,500 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 receives a $200 cash refund.
- **November 8**: Dollar Store pays $125 cash for transportation costs for the November 1 purchase.
- **November 10**: Dollar Store sells merchandise for $2,700 with terms n/30. The cost of the merchandise is $1,350.
- **November 16**: Merchandise is returned to Dollar Store from the November 13 transaction. The returned items are priced at $245 and cost $123; the items were not damaged and were returned to inventory.
**Task:** Journalize the above transactions for the Dollar Store.
**Journal Entry Worksheet:**
- View a transaction list for reference.
- The worksheet includes a table with columns for Date, General Journal, Debit, and Credit.
- Example entry: "Dollar Store purchases merchandise for $2,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1."
**Instructions:** Enter debits before credits in the worksheet. Use the perpetual inventory system to accurately reflect inventory and cash flow.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F492121c0-3843-4585-9c4f-58f7a1b7b43d%2F4469ee84-c7b0-4f7f-8beb-1a5331bd1367%2Frz2o9a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Exercise 5-12 (Algo) Recording Purchases, Sales, Returns, and Shipping**
**Objective:** Learn to journalize merchandising transactions using a perpetual inventory system and the gross method.
**Transactions:**
- **November 1**: Dollar Store purchases merchandise for $2,500 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 receives a $200 cash refund.
- **November 8**: Dollar Store pays $125 cash for transportation costs for the November 1 purchase.
- **November 10**: Dollar Store sells merchandise for $2,700 with terms n/30. The cost of the merchandise is $1,350.
- **November 16**: Merchandise is returned to Dollar Store from the November 13 transaction. The returned items are priced at $245 and cost $123; the items were not damaged and were returned to inventory.
**Task:** Journalize the above transactions for the Dollar Store.
**Journal Entry Worksheet:**
- View a transaction list for reference.
- The worksheet includes a table with columns for Date, General Journal, Debit, and Credit.
- Example entry: "Dollar Store purchases merchandise for $2,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1."
**Instructions:** Enter debits before credits in the worksheet. Use the perpetual inventory system to accurately reflect inventory and cash flow.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education