Periodic Inventory System: Under this system, the balance of the merchandise inventory is not adjusted when the purchases and sales takes place, rather it is adjusted at the end of a particular period on a periodic basis. To Prepare: the necessary journal entries to record the given transactions.

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Exercise 8-1 (Algo) Perpetual inventory system; journal entries (LO8-1] John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 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.) X Answer is not complete. No Transaction General Journal Debit Credit 1a Inventory 500 X Accounts payable 500 1b Inventory Cash 02 Accounts payable Inventory 4 За Cash Sales revenue

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Chapter 8, Problem 8.2E

To determine

Periodic Inventory System: Under this system, the balance of the merchandise inventory is not adjusted when the purchases and sales takes place, rather it is adjusted at the end of a particular period on a periodic basis.

To Prepare: the necessary journal entries to record the given transactions.

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Exercise 8-1 (Algo) Perpetual inventory system; journal entries (LO8-1] John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 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.) X Answer is not complete. No Transaction General Journal Debit Credit 1a Inventory 500 X Accounts payable 500 1b Inventory Cash 02 Accounts payable Inventory 4 За Cash Sales revenue

Exercise 8-2 (Algo) Periodic inventory system; journal entries [LO8-1] John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,200. Freight charges of $400 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $700 and John's account was credited by the supplier. 3. Merchandise costing $2,900 was sold for $5,400 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.) Answer is not complete. No Transaction General Journal Debit Credit 1 1a Purchases 5,400 X Accounts payable 5,400 X Freight-in 500 X 2 1b 500 X Cash 3 02 Accounts payable 800 X 800 X Purchase returns 4 За Cash Sales revenue

This is a variation of E 8–1 modified to focus on the periodic inventory system.]John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for themonth of May 2018:1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’saccount was credited by the supplier.3. Merchandise costing $2,800 was sold for $5,200 in cash.Required:Prepare the necessary journal entries to record these transactions.