Reference no: EM132599807

The following transactions took place at Fabulous Fashions Outlet during July 20X1. Fabulous Fashions Outlet uses a perpetual inventory system. The firm operates in a state with no sales tax.

DATE     TRANSACTIONS

July 1    Purchased dresses for $4,200 plus a freight charge of $200 from Funky Fashions, Invoice 101, dated

July 1;  the terms are 2/10, n/30.20X15 Sold two dresses on account to Alice Rivera, terms 1/10, n/30; issued Sales Slip 788 for $700. The cost of the dresses sold was $560.

7         Received Credit Memorandum 210 for $650 from Funky Fashions for damaged dresses returned; the goods were purchased on Invoice 101 dated July 1.

9        Accepted a return of a dress from Alice Rivera; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $300. The cost of the returned dress was $240.

10      Issued Check 1255 to pay the amount due to Funky Fashions for Invoice 101, dated July 1, less the return of July 7 and less the cash discount.

15      Received payment from Alice Rivera for the sale of July 5, less the return of July 9 and less the cash discount.

15     Recorded sales on credit cards for the two-week period ended July 15, $13,900; the bank charges a 3 percent fee on all credit card sales. The cost of merchandise sold was $11,100.

17      Purchased merchandise on account from American Rags for $3,000, subject to trade discounts of 40 percent and 10 percent, terms 1/10, n/30, Invoice 2078. 26 Paid amount owed to American Rags for the purchase of July 17, less discount, Check 1285.

Question 1: Record the above transactions in a general journal.

Question 2: Analyze What percentage of the total amount due to Funky Fashions for the purchase on July 1 is due to the freight charge?