Question

Journalize these transactions using the perpetual inventory method

a) January 1 purchase inventory for $400 with credit term of 2/15 net 30

b) January 12 paid for the January 1 purchase in full

c) February 1 sold 10 units costing $21 to a customer for $360 on account . This sale has credit term of 1/15 net 40

d) February 9 customer returned three units from his February 1 order because he did not like the color of the goods

e) February 18 customer paid for the February 1 order ( less returns) in full

f) May 5 purchased inventory for $250 with credit terms of 2/10 net 30

g) May 6 paid special freight cost of $30 and I made this inventory purchase in cash

h) May.14 found that 50% of the goods purchased on May 5 or defective. Danner returned these goods

i) June 1 paid for a May 5 purchase (less returns) in full

j). October 1 sold $160 of goods to customer for $220 with a credit term of 1/20 net 40

k) October 14 received cash for payment in full for the October for sale

Answer 1