Question

# Prepare the journal entries for each of the following: June 5   Purchased \$12,000 of inventory on...

Prepare the journal entries for each of the following:

June 5   Purchased \$12,000 of inventory on account with terms 2/10,n/30, FOB Shipping Point.

June 7   Returned \$2,000 of defective merchandise purchased on June 5.

June 8   Paid cash of \$100 for the freight bill for the June 5 purchase.

June 10 Sold inventory on account for \$8,000, terms 3/15,n/eom. The inventory cost \$5,200.

June 12 The customer from June 10 returned \$400 of merchandise. This merchandise cost the company \$250.

June 15 Paid the amount owed for the June 5 purchase less the return of June 7.

June 22 Collected the amount due from the customer of June 10 less the return of June 12.

Journal entries

 Date account and explanation Debit Credit June 5 Merchandise inventory 12000 Account payable 12000 June 7 Account payable 2000 Merchandise inventory 2000 June 8 Merchandise inventory 100 Cash 100 June 10 Account receivable 8000 Sales revenue 8000 Cost of goods sold 5200 Merchandise inventory 5200 June 12 Sales return and allowance 400 Account receivable 400 Merchandise inventory 250 Cost of goods sold 250 June 15 Account payable 10000 Cash (10000*98%) 9800 Merchandise inventory 200 June 22 Cash (7600*97%) 7372 Sales discount 228 Account receivable (8000-400) 7600

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