Question

The Picture Perfect Camera Shop had the following transactions for the month of August 2019. Aug. 1 Purchased cameras for $3,700 plus a freight charge of $180 from the Mason Company, Invoice 532, dated July 29, net payable in 60 days. 6 Purchased color film for $485 from Digital Products, Invoice 989, dated August 4, net payable in 30 days. 10 Purchased camera cases for $935 from Raven Leathers, Invoice 668, dated August 8; terms are 2/10, n/30. 15 Returned defective cameras to Mason Company and received Credit Memorandum 205 for $560. The cameras were originally purchased on Invoice 532 of July 29. 20 Purchased cameras for $3,625 plus freight of $100 from the Braemer Cameras, Invoice 2093, dated August 18; terms are 1/10, n/60. 23 Received Credit Memorandum 597 for $70 from Raven Leathers. The amount is an allowance for slightly damaged but usable goods purchased on Invoice 668 of August 8.

Prepare journal entries to record the above transactions assuming the company uses the periodic inventory system to keep track of its inventory.

Answer 1

Answer
Date	General journal	Debit	Credit
Aug.1	Purchases	$     3,700
	Freight in	$        180
	Accounts payable		$     3,880
Aug.6	Purchases	$        485
	Accounts payable		$        485
Aug.10	Purchases	$        935
	Accounts payable		$        935
Aug.15	Accounts payable	$        560
	Purchase returns		$        560
Aug.20	Purchases	$     3,625
	Freight in	$        100
	Accounts payable		$     3,725
Aug.23	Accounts payable	$          70
	Purchase returns/Allowances		$          70