Reference no: EM131713104
Question - Journal Entries for Merchandise Transactions-Perpetual System
Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the month of June:
June 1 Purchased on account merchandise for resale for $10,000; terms were 2/10, n/30.
June 3 Paid $550 cash for freight on the June 1 purchase.
June 7 Returned merchandise costing $600 (part of the $10,000 purchase).
June 10 Paid for merchandise purchased on June 1.
June 13 Sold merchandise on account costing $8,000 for $10,000; terms were 2/10, n/30.
June 16 Customer returned merchandise costing $750 that had been sold on account for $1,000 (part of the $10,000 sale).
June 22 Received payment from customer for merchandise sold on June 13.
Required - Prepare journal entries for each of the transactions for the Cushing Distributing Company.