The following transactions relate to merchandise purchases and sales for the month of November 2020....
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Accounting
The following transactions relate to merchandise purchases and sales for the month of November 2020. You are required to show the double entry records for each of the transactions. On December 1st, we bought merchandise on credit from Solo Suppliers for $ 480,000. We paid freight charges of $ 10,000 on this On December 2nd, merchandise bought from Solo Suppliers for $ 4,500 was found defective while other merchandise bought for $ 12,000 was returned to Solo Suppliers. Solo suppliers have already told us not to pay for the defective merchandise. On December 3rd, we sold merchandise for $ 590,000 cash. We paid $ 12,000 for delivery of the merchandise to the customers. On December 4th, we sold merchandise on credit for $ 300,000. On December 5th, we received merchandise from our credit customers which had been sold for $ 13,000. On December 5th, we paid Solo Suppliers their account receiving a 10% discount. On December 6th, we received a cash payment from our credit customers allowing the 5% discount on account. prepare a Profit and Loss Statement clearly showing the cost of goods sold, the gross profit and the net profit.
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