Question

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 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 $5,100.

2.Record the payment of freight charges for $350.

3. Record the return of merchandise costing $650.

4. Record the sale of merchandise for $5,300 in cash.

5. Record the cost of goods sold for $2,850.

Answer 1

Journal entry :

No	Account & explanation	debit	credit
1	Purchase	5100
	Account payable		5100
	(TO record purchase)
2	Freight in	350
	Cash		350
	(TO record freight paid)
3	Account payable	650
	Purchase return and allowance		650
	(To record purchase return)
4	Cash	5300
	Sales revenue		5300
	(To record Sales)
5	No entry