Prepare the journal entry assume perpetual inventory system

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Reference no: EM132710395

Problem 1: For the following purchasing and sales transactions, prepare the appropriate journal entry assuming a perpetual inventory system is in place.

1. On January 1, Cougar Corp. purchased inventory from a supplier for $5,000. The credit terms on the transaction are 1/10, net 30.
2. On January 2, Cougar Corp. paid a shipping company $90 for freight associated with the January 1 purchase.
3. On January 5, Cougar Corp sold inventory with a cost of $1,600 for $2,600. The credit terms on the transaction are 1/15, net 30.
4. On January 6, Cougar Corp. returned $750 of the inventory purchased on January 1.
5. On January 7, Cougar Corp. paid $160 to ship the goods sold on January 5.
6. On January 9, Cougar Corp. paid for the purchase on January 1. (Don't forget to consider the purchase return on January 6).
7. On January 10, Cougar Corp. received payment for the sale made on January 5.

Reference no: EM132710395

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