Question

1. Inventory Transactions

The Journal Company has provided you with the following inventory transactions:

Oct 1	Journal Company purchased 2,500 red blankets from Warm Vendor with the following terms 2/10, n/30 FOB destination, and unit price is $26.
Oct 3	Received freight bill for Oct 1 transaction, $600 and paid
Oct 5	Returned 200 blankets from Oct 1 transaction
Oct 9	Paid the amount due to Warm Vendor
Oct 12	Sold 1,700 blankets to City Customer, terms 2/10, n/30, FOB Shipping Point, selling price is $58.
Oct 22	City Customer paid total amount owed
Oct 21	Journal Company purchased 1,900 red blankets from Warm Vendor with the following terms 2/10, n/30 FOB shipping point, unit price is $26
Oct 23	Received freight bill for Oct 21 transaction, $700 and paid.

Required

1. Prepare all of the necessary journal entries, using the following accounts (as we did in class): Cash, Accounts Receivable, Purchases (Inventory), Purchase Returns (Inventory), Inventory, Accounts Payable, Purchase Discounts, Freight-In, Sales, Sales Discounts, Sales Returns, Cost of Goods Sold.
2. Summarize your data and prepare the partial income statement, as we did in class.

Answer 1