Recreational Equipment, Inc., commonly known as REI, is an American retail and outdoor recreation services corporation. REI uses a periodic inventory system. The following are some inventory transactions for the month of May for REI: 1. REI purchased inventory on account for $5,000. Freight charges of $300 were paid in cash. 2. REI returned some of the inventory purchased in transaction (1). The cost of the inventory was $600 and REI's account was credited by the supplier. 3. Inventory costing $2,800 was sold for $5,200 in cash. A Required: Please prepare the necessary journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Transaction 1a Note: Enter debits before credits. 4 Record the merchandise purchased on account for $5,000. 5 General Journal Debit Credit >
Recreational Equipment, Inc., commonly known as REI, is an American retail and outdoor recreation services corporation. REI uses a periodic inventory system. The following are some inventory transactions for the month of May for REI: 1. REI purchased inventory on account for $5,000. Freight charges of $300 were paid in cash. 2. REI returned some of the inventory purchased in transaction (1). The cost of the inventory was $600 and REI's account was credited by the supplier. 3. Inventory costing $2,800 was sold for $5,200 in cash. A Required: Please prepare the necessary journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Transaction 1a Note: Enter debits before credits. 4 Record the merchandise purchased on account for $5,000. 5 General Journal Debit Credit >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![## Inventory Transactions for REI - Journal Entry Exercise
**Recreational Equipment, Inc. (REI)** is an American retail and outdoor recreation services corporation that employs a periodic inventory system. Below are inventory transactions for the month of May:
1. **Purchase of Inventory:**
- REI purchased inventory on account for $5,000.
- Freight charges of $300 were paid in cash.
2. **Return of Inventory:**
- REI returned some of the inventory purchased. The cost of the inventory was $600, and the supplier credited REI's account.
3. **Sale of Inventory:**
- Inventory costing $2,800 was sold for $5,200 in cash.
### Requirement:
Prepare the necessary journal entries for these transactions.
*Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.*
---
### Journal Entry Worksheet
1. **Transaction 1: Record the Merchandise Purchase**
- Merchandise purchased on account for $5,000.
**Note:** Enter debits before credits.
| Transaction | General Journal | Debit | Credit |
|-------------|---------------------------|-------|--------|
| 1a | | | |
---
To complete the journal entries, navigate through the tabs and insert the relevant information for each transaction.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9737efd-391f-457a-98f6-aa044a0527f1%2Fca24daa2-869f-43d5-92eb-d3973f14aae7%2Fyk1fv2v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:## Inventory Transactions for REI - Journal Entry Exercise
**Recreational Equipment, Inc. (REI)** is an American retail and outdoor recreation services corporation that employs a periodic inventory system. Below are inventory transactions for the month of May:
1. **Purchase of Inventory:**
- REI purchased inventory on account for $5,000.
- Freight charges of $300 were paid in cash.
2. **Return of Inventory:**
- REI returned some of the inventory purchased. The cost of the inventory was $600, and the supplier credited REI's account.
3. **Sale of Inventory:**
- Inventory costing $2,800 was sold for $5,200 in cash.
### Requirement:
Prepare the necessary journal entries for these transactions.
*Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.*
---
### Journal Entry Worksheet
1. **Transaction 1: Record the Merchandise Purchase**
- Merchandise purchased on account for $5,000.
**Note:** Enter debits before credits.
| Transaction | General Journal | Debit | Credit |
|-------------|---------------------------|-------|--------|
| 1a | | | |
---
To complete the journal entries, navigate through the tabs and insert the relevant information for each transaction.
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