Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system and the gross method. May 1 Powell purchased merchandise with a price of $1,025 and credit terms of n/30. May 12 Powell returned merchandise that had a price of $200. May 31 Powell paid the amount due from the May 1 purchase, minus the May 12 return. June 3 Powell sold merchandise for $525, with credit terms n/15. Cost of the merchandise is $375. June 5 The customer discovers some of the units are scratched. Powell gives a price reduction (allowance) and credits the customer's accounts receivable for $50 to compensate for the scratches. June 18 Powell received payment for the amount due from the June 3 sale less the June 5 allowance. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 May 1 Record Powell's purchase of merchandise with a price of $1,025 and credit terms of n/30. Note: Enter debits before credits. Date May 01 General Journal Debit Credit
Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system and the gross method. May 1 Powell purchased merchandise with a price of $1,025 and credit terms of n/30. May 12 Powell returned merchandise that had a price of $200. May 31 Powell paid the amount due from the May 1 purchase, minus the May 12 return. June 3 Powell sold merchandise for $525, with credit terms n/15. Cost of the merchandise is $375. June 5 The customer discovers some of the units are scratched. Powell gives a price reduction (allowance) and credits the customer's accounts receivable for $50 to compensate for the scratches. June 18 Powell received payment for the amount due from the June 3 sale less the June 5 allowance. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 May 1 Record Powell's purchase of merchandise with a price of $1,025 and credit terms of n/30. Note: Enter debits before credits. Date May 01 General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system
and the gross method.
May 1 Powell purchased merchandise with a price of $1,025 and credit terms of n/30.
May 12 Powell returned merchandise that had a price of $200.
May 31 Powell paid the amount due from the May 1 purchase, minus the May 12 return.
June 3 Powell sold merchandise for $525, with credit terms n/15. Cost of the merchandise is $375.
June 5 The customer discovers some of the units are scratched. Powell gives a price reduction (allowance) and credits
the customer's accounts receivable for $50 to compensate for the scratches.
June 18 Powell received payment for the amount due from the June 3 sale less the June 5 allowance.
View transaction list
Journal entry worksheet
1
2
3
4
5
6
7
May 1 Record Powell's purchase of merchandise with a price of $1,025 and
credit terms of n/30.
Note: Enter debits before credits.
Date
May 01
General Journal
Debit
Credit
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