Calming Creations Gift Shop uses a perpetual inventory syste

Calming Creations Gift Shop uses a perpetual inventory system. Joumalize the following transactions for Calming Creations Gift Shop. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount. Round all numbers to the nearest shele dollar. (Click the icon to view the transactions.) Feb. 3: Purchased $3,100 of merchandise inventory on account under terms 2/10, n/EOM and FOB shipping point. Date Accounts Debit Credit Feb. 3 Feb. 7: Returned $800 of defective merchandise purchased on February 3. Date Accounts Debit Credit Feb. 7 Feb. 9: Paid freight bill of $600 on February 3 purchase. Date Accounts Debit Credit Feb. 9

Solution

Journal Entries

DATE	PARTICULAR	DR	CR
Feb 3	Merchandise Inventory	3100
	Accounts Payable		3100
Feb 7	Accounts Payable	800
	Merchandise Inventory		800
Feb 9	Freight In	600
	cash		600
Feb 10	Accounts Receivable	4800
	Sales Revenue		4800
	Cost of Goods Sold	2400
	Merchandise Inventory		2400
Feb 12	Accounts Payable	2300
	Merchandise Inventory		69
	Cash		2231
	(Discount = 2300 x 3 %)
Feb 28	Cash	4116
	Sale discount	84
	Accounts Receivable		4200
	(Sales Discount = 4200 x 2 %)