Chapter 13, Problem 2SEA

JOURNAL ENTRIES—PERIODIC INVENTORY Paul Nasipak owns a business called Diamond Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic inventory method.

Jan.    5	Purchased merchandise on account from Prestigious Jewelers, $3,300.
8	Paid freight charge on merchandise purchased, $300.
12	Sold merchandise on account to Diamonds Unlimited, $4,500.
15	Received a credit memo from Prestigious Jewelers for merchandise returned, $700.
22	Issued a credit memo to Diamonds Unlimited for merchandise returned, $900.