Following are the merchandising transactions of Dollar Store. November 1 Dollar Store purchases merchandise for $1,300 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 $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. Dollar Store pays $65 cash for transportation costs for the November 1 purchase. November 10 November 13 Dollar Store sells merchandise for $1,404 with terms n/30. The cost of the merchandise is $702. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction.. The returned items are priced at $290 and cost $145; 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 Date Nov 01 3 Note: Enter debits before credits. Record entry 4 5 Dollar Store purchases merchandise for $1,300 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. General Journal 6 Clear entry 7 8 Debit Credit View general journal >
Following are the merchandising transactions of Dollar Store. November 1 Dollar Store purchases merchandise for $1,300 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 $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. Dollar Store pays $65 cash for transportation costs for the November 1 purchase. November 10 November 13 Dollar Store sells merchandise for $1,404 with terms n/30. The cost of the merchandise is $702. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction.. The returned items are priced at $290 and cost $145; 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 Date Nov 01 3 Note: Enter debits before credits. Record entry 4 5 Dollar Store purchases merchandise for $1,300 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. General Journal 6 Clear entry 7 8 Debit Credit View general journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following are the merchandising transactions of Dollar Store.
November
1 Dollar Store purchases merchandise for $1,300 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 $150 of defective merchandise purchased on November 1, and paid for on
November 5, for a cash refund.
November 10
Dollar Store pays $65 cash for transportation costs for the November 1 purchase.
November 13 Dollar Store sells merchandise for $1,404 with terms n/30. The cost of the merchandise is $702.
November 16 Merchandise is returned to the Dollar Store from the November 13 transaction.. The returned items are priced
at $290 and cost $145; 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
Date
Nov 01
3
Note: Enter debits before credits.
Record entry
4
5
Dollar Store purchases merchandise for $1,300 on terms of 2/5, n/30, FOB
shipping point, invoice dated November 1.
General Journal
6
Clear entry
7
8
Debit
Credit
View general journal
>
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