Journalizing using Perpetual Inventory S

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Task 1 : Journalizing using Perpetual Inventory System

Directions:  Prepare the general journal entries to record these transactions using a perpetual inventory system. (Record all purchases initially at the gross invoice amount) Please use Journal sheets for this task.

 

Wong's Company had the following transactions during December 2020:

December 1 – Sold merchandise for credit for $5,000 terms 3/10,n/30.  The items sold had a cost of $3,500.

                  2 – Purchased merchandise for cash, $720.

                  4 – Purchased merchandise on credit for $2,600, terms 1/20,n/40.

                 10- Issued a credit memorandum for $300 to a customer who returned merchandise purchased on November 29.  The return items had a cost of $210.

                 14-  Received payment for merchandise sold on December 1.

                 12 – Received a credit memorandum for the return of faulty merchandise purchased on December 4 for $600.

                 13 – Paid freight charges of $200 for merchandise ordered last month (FOB shipping point).

                 20 – Paid for the merchandise purchased on December 4 less the portion that was returned.

                 24 – Sold merchandise on credit for $7,000, terms 2/10, n/30.  The items had a cost of P4,900.

                 26 -Received payment for merchandise sold on December 23.

 

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