Following are the merchandising transactions for dollar store.
nov.
1 dollar store purchases merchandise for $1,500 on terms of 2/5, n/30, fob
shipping point, invoice dated november 1.
5 dollar store pays cash for the november 1 purchase.
7 dollar store discovers and returns $200 of defective merchandise purchased
on november 1, and paid for on november 5, for a cash refund.
10 dollar store pays $75 cash for transportation costs for the november 1
purchase.
13 dollar store sells merchandise for $1,620 with terms n/30. the cost of the
merchandise is $810.
16 merchandise is returned to the dollar store from the november 13
transaction. the returned items are priced at $300 and cost $150; the items
were not damaged and were returned to inventory.
journalize the above merchandising transactions for the dollar store assuming it uses a perpetual inventory system and the gross method.