QUESTION 4 Partialy correct 565 points out of 900 Rlag quest

QUESTION 4 Partialy correct 565 points out of 9,00 Rlag question Journal Entries for Merchandise Transactions-Perpetual System Rockford Corporation, which began business on August 1, sells on terms of 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions for August are given below. Unless noted, all transactions are on account and involve merchandise held for resale. The perpetual inventory system is used Aug. 1 Purchased merchandise from Norris, Inc, $3,700, terms 2/10, n/30. 5 Paid freight on shipment from Norris, Inc, $190 7 Sold merchandise to Denton Corporation, $5,100 ($3,700 cost). 7 Paid $270 freight on August 7 shipment and billed Denton for the charges Returned $900 worth of the merchandise purchased August 1 from Norris, Inc, because it was defective. Norris approved the return. o Received $1,100 of returned merchandise (5900 cost) from Denton Corporation Rockford approved the return 10 Paid Norris, Inc., the amount due. 14 Purchased from Chambers, Inc, goods with a price of $8,300. Terms 1/10, n/30. 15 Paid freight on shipment from Chambers, Inc, $310 17 Received the amount due from Denton Corporation. 18 Sold merchandise to Weber, Inc. $9,900 (56,900 cost). 20 Paid S350 freight on August 18 shipment and billed Weber for the charges 24 Paid Chambers, Inc, the amount due

Solution

General Journal Date Description Debit Credit 1 Invntory $   3,700 Accounts Payable $   3,700 5 Invntory $       190 Cash $       190 7 Accounts receivable $   5,100 Sales Revenue $   5,100 7 Cost of goods sold $   3,700 Inventory $   3,700 7 Accounts receivable $       270 Cash $       270 9 Accounts Payable $       900 Invntory $       900 9 Accounts receivable $   1,100 Cash $   1,100 9 Cost of goods sold $       900 Inventory $       900 10 Accounts Payable ($3,700 - $900) $   2,800 Invntory ($2,800 X 2%) $         56 Cash $   2,744 14 Invntory $   8,300 Accounts Payable $   8,300 15 Invntory $       310 Cash $       310 17 Cash $   4,190 Invntory [($5,100 - $1,100) X 2%] $         80 Accounts receivable ($5,100 -$1,100 + $270) $   4,270 18 Accounts receivable $   9,900 Sales Revenue $   9,900 18 Cost of goods sold $   6,900 Inventory $   6,900 20 Accounts receivable $       350 Cash $       350 24 Accounts Payable $   8,300 Invntory ($8,300 X 1%) $         83 Cash $   8,217 28 Cash $ 10,052 Sales discount ($9,900 X 2%) $       198 Accounts receivable ($9,900 + $350) $ 10,250