Chapter 5, Problem 5.20E

Journalizing purchase and sales transactions

Journalize the following transactions for Santa Fe Art Gift Shop. Explanations are not required.

Feb. 3	Purchased $2,800 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point.
7	Returned $700 of defective merchandise purchased on February 3.
9	Paid freight bill of $400 on February 3 purchase.
10	Sold merchandise inventory on account for $4,800. Payment terms were 1/ 15, n/30. These goods cost the company $2.400.
12	Paid amount owed on credit purchase of February 3, less the return and the discount.
16	Granted a sales allowance of $1 00 on the February 10 sale.
23	Received cash from February 10 customer in full settlement of their debt, less the allowance and the discount.