[tracyleerich]

TLC Co. uses a perpetual inventory system. In the journal provided, record the journal entries for the following transactions:
2004
Jul.1-Purchased $1,000 of merchandise on account. Credit terms n/30.
Jul.6-Returned $100 of the items purchased on July 1.
Jul.16-Sold merchandise on account for $750. The merchandise cost $350. Credit terms n/30.
Jul.17-Of the merchandise sold on July 18, $400 of it was returned. The items had cost TLC $250
Jul.25-Received payment in full from the customer of July 16.
Jul.26-Purchased merchandise for cash of $2,000
Jul.31-Paid for the merchandise purchased on July 1 less return on July 6.

... I am totally lost on how to do this.. Any help would be great. Thanks!

[pready]

Jul 1
Debit Inventory for the amount
Credit Accounts Payable for the amount

Jul 6
Debit Accounts Payable for the amount returned
Credit Inventory for the amount returned

Jul 16
Debit Accounts Receivable for the amount of sale
Credit Sales Revenue for the amount of sale

Debit COGS for the amount
Credit Inventory for the amount of COGS

Jul 17
Debit Sales Revenue for the amount returned
Credit Accounts Receivable for the amount Returned

Debit Inventory for the amount of COGS returned
Credit COGS for the amount of COGS returned

Jul 25
Debit Cash for the amount owed
Credit Accounts Receivable for the amount owed

Jul 26
Debit Inventory for the amount
Credit Cash for the amount

Jul 31
Debit Accounts Payable for the amount owed
Credit cash for the amount owed