John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier, 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions, (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet <> 2 3 4 Record the merchandise purchased on account for $5,500. Note: Enter debits before credits. Debit Credit Transaction General Journal
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier, 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions, (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet <> 2 3 4 Record the merchandise purchased on account for $5,500. Note: Enter debits before credits. Debit Credit Transaction General Journal
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter9: Sales And Purchases
Section: Chapter Questions
Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...
Related questions
Topic Video
Question
![John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May:
1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash.
2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited
by the supplier.
3. Merchandise costing $3,050 was sold for $5,700 in cash.
Required:
Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
Journal entry worksheet
1
2 3 4
5
<>
Record the merchandise purchased on account for $5,500.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1a
Record entry
Clear entry
View general journal
1b Record the payment of freight charges for $55o.
2. Record the return of merchandise purchased on account costing $850.
3a. Record the sale of merchandise for $5,700 in cash.
3b. Record the cost of goods sold for $3,050.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60eed353-4ad1-4b61-b1a0-b24e01c73db3%2Fd7621aca-13d9-4eb9-a821-3cf6b21b13ab%2Fvzzq07l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May:
1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash.
2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited
by the supplier.
3. Merchandise costing $3,050 was sold for $5,700 in cash.
Required:
Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
Journal entry worksheet
1
2 3 4
5
<>
Record the merchandise purchased on account for $5,500.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1a
Record entry
Clear entry
View general journal
1b Record the payment of freight charges for $55o.
2. Record the return of merchandise purchased on account costing $850.
3a. Record the sale of merchandise for $5,700 in cash.
3b. Record the cost of goods sold for $3,050.
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 2 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
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781305084087/9781305084087_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,