March 1 Sold inventory on account for $1,500. The inventory cost $800. Terms 2/10, n/30....
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Accounting
March 1 Sold inventory on account for $1,500. The inventory cost $800. Terms 2/10, n/30.
March 3 Purchased inventory on account: $2,800. Terms: 2/10, n/30.
March 5 Inventory was returned from the March 3 sale. The inventory was badly damaged and was thrown out. A credit of $200 was given. The inventory had an original cost of $110.
March 9 Received payment for the inventory sold on March 1.
March 16 Purchased inventory on account: $500. Terms: 1/5, n/15.
March 18 Paid freight on March 16 inventory purchase: $50.
March 22 Sold inventory for $3,000 on account. The cost of inventory was $1,100. Terms 2/10, n/30.
March 24 Paid for inventory purchase from March 16.
March 31 Customer from the March 22 sale paid the amount owing.
Prepare journal entries based on the transactions above.
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