A retailer uses a perpetual inventory system. During October, the following transactions occurred. On October...
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Accounting
A retailer uses a perpetual inventory system. During October, the following transactions occurred.
On October 3, the retailer sold merchandise to a customer on terms of 3/10 net 30 days, FOB destination. The selling price was $4,200 and cost of the inventory sold was 2,100.
The correct party paid $350 of freight costs on October 4 to the shipping company for delivery of the October 3 sale.
On October 5, the retailer purchased $10,600 of merchandise from a supplier on terms of 1/15 net 45, FOB destination.
The correct party paid $190 of freight costs on October 6 to the shipping company for the October 5 purchase.
On October 6, the October 3 customer returned $800 of the goods sold to the retailer. The cost of the inventory returned was $400. The stock was undamaged and returned to inventory.
The retailer returned $1,000 of inventory to its supplier on October 8. The inventory was purchased on October 5.
On October 11, the retailer received cash payment from its October 3 customer.
On October 13, the retailer paid for the inventory purchased on October 5.
REQUIRED - Prepare the retailers journal entries for the above transactions
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