Following are the merchandising transactions of Dollar Store. November 1 Dolar Store purchases merchandise $1,800 on terms of 2/5, n/30, FOB shipping for point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 purchase. November 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. November 10 Dollar Store pays $90 cash for transportation costs for the November 1 purchase. November 13 Dollar Store sells merchandise for $1,944 terms n/30. merchandise is $972. with The cost of the November 16 Merchandise is returned to the 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. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method. View transaction list

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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Following are the merchandising transactions of Dollar
Store.
November 1 Dollar
purchases
$1,800 on terms of 2/5, n/30, FOB shipping
point, invoice dated November 1.
November 5 Dollar Store pays cash for the November 1
Store
merchandise
for
purchase.
November 7 Dollar Store discovers and returns $150 of
defective merchandise purchased on November
1, and paid for on November 5, for a cash
refund.
November 10 Dollar
cash
for
for the November
Store
$90
pays
costs
transportation
purchase.
1
November 13 Dollar Store sells merchandise for $1,944
with
terms
n/30.
The
cost
of
the
merchandise is $972.
November 16 Merchandise is returned to the Dollar Store
November
from
the
13
transaction.
The
returned items are priced 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
2
4
5
6
7 8
Dollar Store purchases merchandise for $1,800 on terms of 2/5, n/30, FOB
shipping point, invoice dated November 1.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Nov 01
Record entry
Clear entry
View genera
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1 of 1
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Transcribed Image Text:Following are the merchandising transactions of Dollar Store. November 1 Dollar purchases $1,800 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 Store merchandise for purchase. November 7 Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. November 10 Dollar cash for for the November Store $90 pays costs transportation purchase. 1 November 13 Dollar Store sells merchandise for $1,944 with terms n/30. The cost of the merchandise is $972. November 16 Merchandise is returned to the Dollar Store November from the 13 transaction. The returned items are priced 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 2 4 5 6 7 8 Dollar Store purchases merchandise for $1,800 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. Note: Enter debits before credits. Date General Journal Debit Credit Nov 01 Record entry Clear entry View genera < Prev 1 of 1 Next >
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