Record the transactions with corresponding journal entries

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Reference no: EM13794844

Stark Industries reports the following transactions for the month of November. Record the transactions with corresponding journal entries. Stark Industries inventory system is perpetual.

a. Nov 1: Stark Industries purchases $13,700 of merchandise for resale from Thor Goods. Terms are freight on board (FOB) shipping point, 3/10, n/30. Thor ships the same day.

b. Nov 9: The goods from Thor Goods arrive. Stark pays off the entire balance.

c. Nov 12: Upon a closer look of Thor Goods, $1,200 of merchandise (original purchase price) is found to be defective and is sent back to Trask for a cash refund

d. Nov 14: Stark sells $12,000 of inventory to Peter Parker, terms 2/15, n/60, Freight on board (FOB) shipping point, and ships the same day. The sales price is $18,000.

e. Nov 17: Peter Parker returns $2,000 of defective merchandise (selling price of $3,000) to Stark. The merchandise can be put back to inventory and is valued at 75% of it original cost.

f. Nov 19: Peter Parker complains that some of the items received are the wrong color. Stark issues him a credit memorandum for $500, and he decides to keep those goods.

g. Nov 24 Peter Parker makes full payment on account.

Reference no: EM13794844

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