Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 26

Journalize the following merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system.
1. On November 1, Chilton Systems purchases merchandise for $1,500 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1.
2. On November 5, Chilton Systems pays cash for the November 1 purchase.
3. On November 7, Chilton Systems discovers and returns $200 of defective merchandise purchased on November 1 for a cash refund.
4. On November 10, Chilton Systems pays $90 cash for transportation costs with the November 1 purchase.
5. On November 13, Chilton Systems sells merchandise for $1,600 on credit. The cost of the merchandise is $800.
6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items are priced at $300 and cost $130; the items were not damaged and were returned to inventory.