Record the journal entries for the selected transactions encountered by Rainbow Inc. during February 2021. Rainbow Inc. uses a perpetual inventory system and estimates a return rate of 3% on its sales based 01-Feb Purchased merchandise on account from PaintHub Ltd at a cost of $54000, terms 1/15, n/30, FOB shipping point. 02-Feb Freight charges of $900 were paid by the appropriate party on the February1 purchase of merchandise. (Enter n/a in each blank for this transaction if no journal entry is required). 03-Feb Returned for credit $3000 of damaged goods purchased from PaintHub Ltd. on February 1. 08-Feb Purchased supplies for $1700 cash. 10-Feb Sold the remaining merchandise pubchased from PaintHub to Colour4ife Corp. for $98000 on account, terms n/30, FOB destination. 12-Feb Freight charges of $860 were paid by the appropriate party on the February 10 purchase of merchandise. Enter n/a in each field which is not required for recording this transaction.
Record the journal entries for the selected transactions encountered by Rainbow Inc. during February 2021. Rainbow Inc. uses a perpetual inventory system and estimates a return rate of 3% on its sales based 01-Feb Purchased merchandise on account from PaintHub Ltd at a cost of $54000, terms 1/15, n/30, FOB shipping point. 02-Feb Freight charges of $900 were paid by the appropriate party on the February1 purchase of merchandise. (Enter n/a in each blank for this transaction if no journal entry is required). 03-Feb Returned for credit $3000 of damaged goods purchased from PaintHub Ltd. on February 1. 08-Feb Purchased supplies for $1700 cash. 10-Feb Sold the remaining merchandise pubchased from PaintHub to Colour4ife Corp. for $98000 on account, terms n/30, FOB destination. 12-Feb Freight charges of $860 were paid by the appropriate party on the February 10 purchase of merchandise. Enter n/a in each field which is not required for recording this transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Record the journal entries for the selected transactions encountered by Rainbow Inc. during February
2021. Rainbow Inc. uses a perpetual inventory system and estimates a return rate of 3% on its sales based
01-Feb Purchased merchandise on account from PaintHub Ltd at a cost of $54000, terms 1/15,
n/30, FOB shipping point.
02-Feb Freight charges of $900 were paid by the appropriate party on the February 1 purchase of
merchandise. (Enter n/a in each blank for this transaction if no journal entry is required).
03-Feb Returned for credit $3000 of damaged goods purchased from PaintHub Ltd. on February 1.
08-Feb Purchased supplies for $1700 cash.
10-Feb Sold the remaining merchandise pubchased from PaintHub to Colour4Life Corp. for
$98000 on account, terms n/30, FOB destination.
12-Feb Freight charges of $860 were paid by the appropriate party on the February 10 purchase
of merchandise. Enter n/a in each field which is not required for recording this
transaction.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d39f439-c0df-4260-bff7-863bf3eaa9a0%2F488134fe-b9aa-46d4-8be3-588f11636f6e%2Fd4podek_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Record the journal entries for the selected transactions encountered by Rainbow Inc. during February
2021. Rainbow Inc. uses a perpetual inventory system and estimates a return rate of 3% on its sales based
01-Feb Purchased merchandise on account from PaintHub Ltd at a cost of $54000, terms 1/15,
n/30, FOB shipping point.
02-Feb Freight charges of $900 were paid by the appropriate party on the February 1 purchase of
merchandise. (Enter n/a in each blank for this transaction if no journal entry is required).
03-Feb Returned for credit $3000 of damaged goods purchased from PaintHub Ltd. on February 1.
08-Feb Purchased supplies for $1700 cash.
10-Feb Sold the remaining merchandise pubchased from PaintHub to Colour4Life Corp. for
$98000 on account, terms n/30, FOB destination.
12-Feb Freight charges of $860 were paid by the appropriate party on the February 10 purchase
of merchandise. Enter n/a in each field which is not required for recording this
transaction.
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