Question

John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...

John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018:

John’s purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash.

John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and John’s account was credited by the supplier.

Merchandise costing $3,700 was sold for $7,000 in cash.


Required:
Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)


1. Record the merchandise purchased on account for $6,800.

2. Record the freight charges of $1,200.

3.Record the return of merchandise costing $1,500.

4.Record the sale of merchandise for $7,000 in cash.

5. Record the cost of goods sold for $3,700.

Homework Answers

Answer #1

Journal entry :

No Account & explanation debit credit
1 Merchandise inventory 6800
Account payable 6800
(To record purchase)
2 Merchandise inventory 1200
Cash 1200
(TO record freight paid)
3 Account payable 1500
Merchandise inventory 1500
(To record return)
4 Cash 7000
Sales revenue 7000
(To record Sales)
5 Cost of goods sold 3700
Merchandise inventory 3700
(TO record cost of goods sold)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: John’s purchased merchandise on account for $6,100. Freight charges of $850 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,150 and John’s account was credited by the supplier. Merchandise costing $3,350 was sold for $6,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: John’s purchased merchandise on account for $6,500. Freight charges of $1,050 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,350 and John’s account was credited by the supplier. Merchandise costing $3,550 was sold for $6,700 in cash. Required: Prepare the necessary journal entries to record these transactions. 1.) Record...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018: John's purchased merchandise on account for $5,100. Freight charges of $350 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $650 and John’s account was credited by the supplier. Merchandise costing $2,850 was sold for $5,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: John's purchased merchandise on account for $5,900. Freight charges of $750 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,050 and John’s account was credited by the supplier. Merchandise costing $3,250 was sold for $6,100 in cash. Required: Prepare the necessary journal entries to record these transactions.
John’s purchased merchandise on account for $6,400. Freight charges of $1,000 were paid in cash. John’s...
John’s purchased merchandise on account for $6,400. Freight charges of $1,000 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,300 and John’s account was credited by the supplier. Merchandise costing $3,500 was sold for $6,600 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record...
Cornerstone Exercise 6-20 (Algorithmic) Recording Purchase Transactions Mathis Company and Reece Company use the perpetual inventory...
Cornerstone Exercise 6-20 (Algorithmic) Recording Purchase Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: On April 1, Mathis Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was $3,500, and the cost of the merchandise sold was $2,450. On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its warehouse. On...
The following information is available for the Johnson Corporation: Beginning inventory $ 37,000 Inventory purchases (on...
The following information is available for the Johnson Corporation: Beginning inventory $ 37,000 Inventory purchases (on account) 167,000 Freight charges on purchases (paid in cash) 22,000 Inventory returned to suppliers (for credit) 24,000 Ending inventory 42,000 Sales (on account) 262,000 Cost of inventory sold 160,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Record merchandise purchased on account for $167,000....
Pronghorn Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:...
Pronghorn Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from DeVito Ltd. for $25,700, terms 1/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $700 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,450. 8 Returned damaged merchandise to DeVito and was given a purchase allowance of $3,400. The merchandise was repaired by DeVito and returned to inventory for future...
james Company began the month of October with inventory of $21,000. The following inventory transactions occurred...
james Company began the month of October with inventory of $21,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $31,000 on October 12, 2018. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $560 were paid in cash. On October 31, James paid for the merchandise purchased on October 12. During October, merchandise costing $18,900 was...
Omer Ltd uses perpetual inventory system. During June, the following transactions and event occurred. All transactions...
Omer Ltd uses perpetual inventory system. During June, the following transactions and event occurred. All transactions are exclusive (net) of GST. June 3 Purchased $ 1000 of inventory terms 3/10, n/60 6 Returned $ 300 of inventory purchased on June 3 7 Paid Freight charges of $ 50 on goods purchased on June 3 12 Paid for the goods purchased on June 3 13 Sold goods on credit for $ 500 terms, 2/5 n/30. Cost of sales was $ 100...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT