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Problem 1: Prepare general journal entries to record the following merchandising transactions for United Sales. United uses a perpetual inventory system.
Mar 1 Sold merchandise with a cost of $2,200 for $3,500 to Access Company, terms 2/10, n/30, FOB shipping point.Mar 3 Purchased merchandise for $4,100 from Mo's Warehouse, terms 1/15, n/30, FOB shipping point.Mar 5 The correct company paid freight costs of $175 for the Mar 3 transaction.Mar 15 Paid for the merchandise purchased on Mar 3.Mar 17 Access Company returned $500 of merchandise because it was the wrong colour. The cost of the merchandise was $200 and the merchandise was returned to inventory.Mar 20 Received payment from Access Company for the balance owing.
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