Question

The following transactions took place at Fine Fashions Outlet during July 20X1. Fine Fashions Outlet uses a perpetual inventory system.

DATE			TRANSACTIONS
20X1
July	1		Purchased dresses for $4,840 plus a freight charge of $340 from Fashion Expo, Invoice 101, dated July 1; the terms are 1/10, n/30.
	5		Sold two dresses on account to Alice Chu, terms 2/10, n/30; issued Sales Slip 788 for $780. The cost of the dresses sold was $490.
	7		Received Credit Memorandum 210 for $640 from Fashion Expo for damaged dresses returned; the goods were purchased on Invoice 101, dated July 1.
	9		Accepted a return of a dress from Alice Chu; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $290. The cost of the returned dress was $225.
	10		Issued Check 1255 to pay the amount due to Fashion Expo for Invoice 101, dated July 1, less the return of July 7 and less the cash discount.
	15		Received payment from Alice Chu for the sale of July 5, less the return of July 9 and less the cash discount.
	15		Recorded sales on bank credit cards for the two-week period ended July 15, $12,900; the bank charges a 3% fee on all credit card sales. The cost of merchandise sold was $8,900.
	17		Purchased merchandise on account from Fashion Wholesalers for $5,400, subject to trade discounts of 30% and 15%; terms 2/10, n/30, Invoice 2078.
	26		Paid amount owed to Fashion Wholesalers for the purchase of July 17, Check 106.

Required:
Record the transactions in a general journal.

Answer 1

Journal Entry
2001				Dr	Cr
Jul'1		Purchase ac	4840
		Freight ac	340
		To Fashion expo		5180
Jul'5		Alice Chu ac	780
		To Sales			780
Jul'7		Fashion expo	640
		To Purchase return		640
Jul'9		Sales return	290
		To Alice chu		290
Jul'10		Fashion Expo	1255
		To Bank			1255
Jul'15		Bank ac		490
		To Alice Chu		490
		(780-290)
Jul'15		Bank Charges ac (3% of 8900)	267
		To Bank			267
Jul'17		Purchase ac dr	5292
		To fashion wholesaler	5292
		(If paid within 10 days then 2 % discounta and entry showed that payment is done within 10 days)
Jul'26		Fashion wholesaler	5292
		To Bank			5292