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    xexyanna16's Avatar
    xexyanna16 Posts: 9, Reputation: 1
    New Member
     
    #1

    Feb 11, 2009, 04:40 PM
    Perpetual inventory system
    Using the method perpetual inventory system, how can I record in the journal entries this transactions:
    1-John's purchased merchandise on account for $5000.00. Freight charges of $300.00 were paid in cash.

    2-John's returned some of the merchandise purchased in 1. The cost of the merchandise was $600.00 and John's account was credited by the supplier.

    3-Merchandise costing $2800.00 was sold for $5200.00 in cash.

    I think this a correct answer for # 1. If not can someone tell me..?

    Debit credit
    1- Inventory... $5300
    Accounts payable... $5300

    Inventory... $300
    Cash... $300
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
     
    #2

    Feb 11, 2009, 05:22 PM

    Debit Inventory for 5,300
    Credit Cash for 300
    Credit Accounts Payable for 5,000

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