Reference no: EM13905366

Journalize the following merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system. 

1. On November 1, Chilton Systems purchases merchandise for $ 1,500 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1. 

2. On November 5, Chilton Systems pays cash for the November 1 purchase. 

3. On November 7, Chilton Systems discovers and returns $ 200 of defective merchandise purchased on November 1 for a cash refund. 

4. On November 10, Chilton Systems pays $ 90 cash for transportation costs with the November 1 purchase. 

5. On November 13, Chilton Systems sells merchandise for $ 1,600 on credit. The cost of the merchandise is $ 800. 

6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $ 300 and cost $ 130. The merchandise is returned to inventory.