Reference no: EM133140478

Question - Selected transactions follow for Penny Worth Sports Ltd. during the company's first month of business. The company expects a return rate of 8% and uses a perpetual inventory system.

Feb. 2 Sold $1,134 of merchandise to Andrew Noren on account, terms n/30. The goods had cost Penny Worth $766.

Feb. 4 Andrew Noren returned for credit $139 of the merchandise purchased on February 2. The goods had cost Penny Worth $85 and they were returned to inventory.

Feb. 5 Sold $766 of merchandise to Dong Corporation on account, terms n/30. The goods had cost Penny Worth $492.

Feb. 8 Sold $842 of merchandise to Michael Collins for cash. The goods had cost Penny Worth $626.

Feb. 10 Sold $925 of merchandise to Rafik Kurji account, terms n/30. The goods had cost Penny Worth $679.

Feb. 22 Dong Corporation paid its account in full.

Feb. 24 Andrew Noren purchased an additional $694 of merchandise on account, terms n/30. The goods had cost Penny Worth $410.

Feb. 27 Sold $1,733 of merchandise to Batstone Corporation, terms n/30. The goods had cost Penny Worth $1,107.

Feb. 28 Andrew Noren paid $995 on account.

Required - Prepare the journal entries to record each of the above transactions.