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Question - WeAreFashion retails designer bags from its warehouse in New Jersey. WeAreFashion completed the following transactions during month of January.
1. Purchased 30 bags for $25,000 from Los Angeles Designs. Terms 2/10, n/30. Freight costs were $1,500 paid by WeAreFashion.
2. Returned $3,700 worth of bags to Los Angeles Designs. The brand of bags was incorrect.
3. WeAreFashion settled within 7 days the balance due on account to Los Angeles Designs.
4. Sold bags costing $6,600 for $9,200 ($6,800 for cash and the remainder on credit).
Required - Using the periodic inventory system, record the above transactions in the general journal of WeAreFashion for the month of January. Narrations are not required.
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