perpetual inventory system

tinker78 · #1 Sep 8, 2007, 10:50 AM

Steve's Skateboards uses the perpetual inventory system and had the following sales transactions during April:

April 2: Sold Merchandise to Happy Hobby shop on credit for $4,800, terms 1/15, n/60. The items sold had a cost of $2,700.

April 4: Happy Hobby Shop returned merchandise that had a selling price of $200. The cost of the merchandise was $110.

April 13: Happy Hobby Shop paid for the merchandise sold on April 2, taking any appropriate discount earned.

Prepare the journal entries that Steve's Skateboards must make to record these transactions.



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