This exercise reviews the journal entries to record purchases of merchandise inventory under a periodic inventory system.
A list of transactions for the Randy Travis Sales Company appears below. A periodic inventory system is used.
|
July 1 |
Purchased merchandise from Oliver Company for $3,000 cash. |
|
2 |
Purchased merchandise from Medlin Company, $5,000, FOB shipping point, terms 2/10, n/30. |
|
6 |
Paid freight on July 2 purchase, $125. |
|
10 |
Paid Medlin Company the amount owed. |
|
11 |
Purchased merchandise from McBride Company, $7,000, FOB destination, terms 1/10, n/30. |
|
23 |
Paid McBride Company the amount owed. |
|
Aug. 7 |
Purchased merchandise from Dun Company, $4,000, FOB destination, terms 2/10, n/30. |
|
9 |
Returned one-fourth of the merchandise acquired in the August 7 transaction to Dun Company because of detected defects. |
|
16 |
Paid Dun Company the balance owed. |
Instructions
Prepare the journal entries to record these transactions on the books of the Randy Travis Sales Company.