Consider the following transactions for Seacost Drug Store C

Consider the following transactions for Seacost Drug Store Click the icon to view the transactions.) Requirements 1. Jounalize the purchase transactions. Explanations are not required. 2. In the final analysis, how much did the inventory cost Seacost? Uct. Seaccst pays a iU tre gnt cnarge. Date Accounts Debit Credit Oct. 3 More Info Oct. 7: Seacost returns $5,500 of the merchandise due to damage during shipment. Date Accounts Debit Credit Oct. 2 Seacost buys $22,500 worth of inventory on account with credit terms of 3 / 15, n / 30 Oct. 7 FOB shipping point. 3 Seacost pays a $130 freight charge. 7 Seacost returns $5,500 of the merchandise due to damage during shipment. 14 Seacost paid the amount due, less return and discount. Oct. 14: Seacost paid the amount due, less return and discount. PrintDone Date Accounts Debit Credit Oct. 14

Solution

Date Accounts Debit Credit 2-Oct merchandise inventory 22,500 Accounts payable 22,500 3-Oct Merchandise inventory 130 cash 130 7-Oct Accounts payable 5,500 Merchandise inventory 5,500 14-Oct Accounts (22500-5500) 17,000 Merchandise inventory 510 Cash (17000*97%) 16490 Requirement 2 inventory cost for Seacost 16,620