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Dakin uses perpetual inventory. Journalize the July transactions: 1, July 1 Purchased $35,000 of merchandise on...

Dakin uses perpetual inventory. Journalize the July transactions: 1, July 1 Purchased $35,000 of merchandise on account, term 2/10, n/30. 2. July 3 Returned $7000 of damaged merchandise for credit 3. July 11 Paid for the merchandise purchased within 10 days

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Under perpetual system of inventory, inventory is up-dated after every transaction concerning inventory like purchases, purchase returns & purchase discounts availed.Also after every sale, Inventory is credited & COGS is debited.
Date Account Title Debit Credit
1-Jul Merchandise Inventory 35000
Accounts payable 35000
(Terms 2/10,n/30)
3-Jul Accounts payable 7000
Merchandise Inventory 7000
(Return of damaged inventory)
11-Jul Accounts payable(35000-7000) 28000
Cash 27440
Merchandise Inventory 560
(Payment, within discount period,for above purchase availing 2% cash discounts )
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