Question

Journalize each of the following transactions assuming a perpetual inventory system.

Feb 1    Purchased $17,000 of merchandise inventory; terms 1/10, n/30.

Feb 3    Returned defective inventory worth $3,250.

Feb 11 Paid for the merchandise purchased on February 1.

Apr 5    Sold merchandise to a customer for $6,800; terms 1/10, n/30 (cost of sales $4,080).

Apr 8    Sold merchandise for $12,400; terms 1/10, n/30 (cost of sales $7,440).

Apr 15  Collected the amount owing from the credit customer of Apr 5.

May 4   The customer of April 8 paid the balance owing.

Answer 1

Date	Accounts and Explanation	Debit	Credit
Feb 1	Merchandise Inventory	$17,000
	Accounts Payable		$17,000
	(Purchased inventory on account)
Feb 3	Accounts Payable	$3,250
	Merchandise Inventory		$3,250
	(Returned defective inventory to seller)
Feb 11	Accounts Payable	$13,750
	Merchandise Inventory		$138	($17,000 - $3,250) x 1%
	Cash		$13,613
Apr 5	Accounts Receivable	$6,800
	Sales Revenue		$6,800
	Cost of Goods Sold	$4,080
	Merchandise Inventory		$4,080
Apr 8	Accounts Receivable	$12,400
	Sales Revenue		$12,400
	Cost of Goods Sold	$7,440
	Merchandise Inventory		$7,440
Apr 15	Cash	$6,732
	Sales Discounts	$68		($6,800 x 1%)
	Accounts Receivable		$6,800
May 4	Cash	$12,400
	Accounts Receivable		$12,400