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Following are the merchandising transactions for dollar store

01/05/2021 Client: muhammad11 Deadline: 2 Day

Prepare journal entries for the following merchandising transactions of Dollar Store assuming it uses a perpetual inventory system and the gross method.

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 $90 cash for transportation costs for the November 1 purchase.

13 Dollar Store sells merchandise for $1,600 with terms n/30. The cost of the merchandise is $800.

16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $160 and cost $80; the items were not damaged and were returned to inventory.

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