John’s Specialty Store uses a perpetual 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. 1. Record the merchandise purchased on account for $5,000. 2. Record the payment of freight charges for $300. 3. Record the return of merchandise purchased on account costing $600. 4. Record the sale of merchandise for $5,200 in cash. 5. Record the cost of goods sold for $2,800.
John’s Specialty Store uses a perpetual 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. 1. Record the merchandise purchased on account for $5,000. 2. Record the payment of freight charges for $300. 3. Record the return of merchandise purchased on account costing $600. 4. Record the sale of merchandise for $5,200 in cash. 5. Record the cost of goods sold for $2,800.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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John’s Specialty Store uses a perpetual 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
1. Record the merchandise purchased on account for $5,000.
2. Record the payment of freight charges for $300.
3. Record the return of merchandise purchased on account costing $600.
4. Record the sale of merchandise for $5,200 in cash.
5. Record the cost of goods sold for $2,800.
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