Acct301 Essentials of Accounting: E5-14 Following are the merchandising transactions for Chilton
Acct301 Essentials of Accounting
Exercise 5-14 Preparing journal entries-perpetual system Following are the merchandising transactions for Chilton Systems. 1. On November 1, Chilton Systems purchases merchandise for $1,500 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1. 2. On November 5, Chilton Systems pays cash for the November 1 purchase. 3. On November 7, Chilton Systems discovers and returns $175 of defective merchandise purchased on November 1 for a cash refund. 4. On November 10, Chilton Systems pays $75 cash for transportation costs with the November 1 purchase. 5. On November 13, Chilton Systems sells merchandise for $1,620 on credit. The cost of the merchandise is $810. 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $265 and cost $132. The merchandise is returned to inventory. Journalize the above merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system.