John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May:John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier.Merchandise costing $2,800 was sold for $5,200 in cash.Required:Prepare the necessary journal entries to record these transactions.Record the merchandise purchased on account for $5,000.Record the payment of freight charges for $300.Record the return of merchandise purchased on account costing $600.Record the sale of merchandise for $5,200 in cash. Record the cost of goods sold for $2,800.

Name: John’s Specialty Store uses a periodic inventory system. The following
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Description: John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May:John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.John’s returned some of the merc

Journal entries in the business are based on rules of debit and credit. Rules of debit and credit…

Answered: John’s Specialty Store uses a periodic…

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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John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May:

John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.
John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier.
Merchandise costing $2,800 was sold for $5,200 in cash.

Required:
Prepare the necessary journal entries to record these transactions.

Record the merchandise purchased on account for $5,000.
Record the payment of freight charges for $300.
Record the return of merchandise purchased on account costing $600.
Record the sale of merchandise for $5,200 in cash.
Record the cost of goods sold for $2,800.

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