Journalizing purchase and sale transactions—perpetual inventory Consider the following transactions that occurred in February 2012 for Gems, Inc.
|
Feb |
3 |
Purchased inventory on terms 1/5, n/eom, $2,000. |
|
|
4 |
Purchased inventory for cash of $1,600. |
|
|
6 |
Returned $600 of inventory from February 4 purchase. |
|
|
8 |
Sold goods on terms of 2/15, n/35 of $7,000 that cost $3,500. |
|
|
10 |
Paid for goods purchased on February 3. |
|
|
12 |
Received goods from February 8 sale of $500 that cost $190. |
|
|
23 |
Received payment from February 8 customer. |
|
|
25 |
Sold goods to Farms for $900 that cost $350. Terms of n/30 were offered. |
|
|
|
As a courtesy to Farms, $75 of freight was added to the invoice for which |
|
|
|
cash was paid directly to UPS by Gems, Inc. |
|
|
29 |
Received payment from Farms. |
Requirement
1. Journalize February transactions for Gems, Inc. No explanations are required.