Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $7,000. Terms 1/15, n/EOM, FOB shipping point. Sep. 4 Paid freight bill of $55 on September 3 purchase.
Sep. 4 Purchase merchandise inventory for cash of $2,100.
Sep. 6 Returned $1,000 of inventory from September 3 purchase.
Sep. 8 Sold merchandise inventory to Herenda Company, $5,500, on account. Terms 1/15, n/35. Cost of goods, $2,255.
Sep. 9 Purchased merchandise inventory on account from Tripp Wholesalers, $10,000. Terms 1/10, n/30, FOB destination.
Sep. 10 Made payment to Shallin Wholesalers for goods purchased on September 3, less return and discount.
Sep. 12 Received payment from Hilton Company, less discount.
13. After negotiations, I received a $100 allowance from Tristan Wholesalers.
15.Sold merchandise inventory to Jesper Company, $3,500, on the account. Terms n/EOM. Cost of goods, $1,610
22.Made payment, less allowance, to Tristan Wholesalers for goods purchased on September 9
23. Jesper Company returned $800 of the merchandise sold on September 15. Cost of goods, $368
25. Sold merchandise inventory to Smithson for $2,000 on account that cost $780 Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Smithson, $55 of freight was added to the invoice for which cash was paid by Oceanic
29. Received payment from Smithson, less discount.
30. Received payment from Jesper Company, less return.

Required:
Journalize the transaction.

Sep. 3

Dr Merchandise Inventory$7,000

Cr Accounts Payable—Shallin Wholesalers $7,000

Sep. 4

Dr Merchandise Inventory$55

Cr Cash $55

Sep. 4

Dr Merchandise Inventory$2,100

Cr Cash $2,100

Sep. 6

Dr Accounts Payable—Shallin Wholesalers$1,000

Cr Inventory $1,000

Sep. 8

Dr Accounts Receivable— Herenda Company$5,445

Cr Sales Revenue $5,445

Sep. 8

Dr Cost of Goods Sold$2,255

Cr Merchandise Inventory $2,255

Sep. 9

Dr Merchandise Inventory$10,000

Cr Accounts Payable—Tripp Wholesalers $10,000

Sep. 10

Dr Accounts Payable—Shallin Wholesalers$6,000

Cr Merchandise Inventory $60

Cr Cash $5,940

Sep. 12

Dr Cash$5,445

Accounts Receivable—Herenda Company $5,445

Sep. 13

Dr Accounts Payable—Tristan Wholesalers$100

Cr Merchandise Inventory $100

Sep. 15

Dr Accounts Receivable—Jesper Company$3,500

Cr Sales Revenue $3,500

Sep. 15

Dr Cost of Goods Sold$1,610

Cr Merchandise Inventory $1,610

Sep. 22

Dr Accounts Payable—Tristan Wholesalers$9,900

Cr Cash $9,900

Sep. 23

Dr Refunds Payable$800

Cr Accounts Receivable—Jesper Company $800

Sep. 23

Dr Merchandise Inventory$368

Cr Estimated Returns Inventory $368

Sep. 25

Dr Accounts Receivable—Smithson$1,995

Cr Sales Revenue $1,940

Cr Cash $55

Sep. 25

Dr Cost of Goods Sold$780

Cr Merchandise Inventory $780

Sep. 29

Dr Cash$1,995

Cr Accounts Receivable— Smithson $1,995

Sep. 30

Dr Cash$2,100

Cr Accounts Receivable—Jesper Company $2,100

Explanation:

Preparation of the journal entries

Sep. 3

Dr Merchandise Inventory$7,000

Cr Accounts Payable—Shallin Wholesalers $7,000

Sep. 4

Dr Merchandise Inventory$55

Cr Cash $55

Sep. 4

Dr Merchandise Inventory$2,100

Cr Cash $2,100

Sep. 6

Dr Accounts Payable—Shallin Wholesalers$1,000

Cr Inventory $1,000

Sep. 8

Dr Accounts Receivable— Herenda Company$5,445

Cr Sales Revenue $5,445

[$5,500-(1%*$5,500)]

Sep. 8

Dr Cost of Goods Sold$2,255

Cr Merchandise Inventory $2,255

Sep. 9

Dr Merchandise Inventory$10,000

Cr Accounts Payable—Tripp Wholesalers $10,000

Sep. 10

Dr Accounts Payable—Shallin Wholesalers$6,000

($7,000-$1,000)

Cr Merchandise Inventory $60

(1%*$6,000)

Cr Cash $5,940

($6,000-$60)

Sep. 12

Dr Cash$5,445

[$5,500-(1%*$5,500)]

Accounts Receivable—Herenda Company $5,445

Sep. 13

Dr Accounts Payable—Tristan Wholesalers$100

Cr Merchandise Inventory $100

Sep. 15

Dr Accounts Receivable—Jesper Company$3,500

Cr Sales Revenue $3,500

Sep. 15

Dr Cost of Goods Sold$1,610

Cr Merchandise Inventory $1,610

Sep. 22

Dr Accounts Payable—Tristan Wholesalers$9,900

Cr Cash $9,900

($10,000-$100)

Sep. 23

Dr Refunds Payable$800

Cr Accounts Receivable—Jesper Company $800

Sep. 23

Dr Merchandise Inventory$368

Cr Estimated Returns Inventory $368

Sep. 25

Dr Accounts Receivable—Smithson$1,995

($1,940+$55)

Cr Sales Revenue $1,940

[$2,000-(3%*$2,000)]

Cr Cash $55

Sep. 25

Dr Cost of Goods Sold$780

Cr Merchandise Inventory $780

Sep. 29

Dr Cash$1,995

($1,940+$55)

Cr Accounts Receivable— Smithson $1,995

Sep. 30

Dr Cash$2,100

Cr Accounts Receivable—Jesper Company $2,100

d. automatic stabilizers.

explanation: