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Transactions for CSI Systems

Journalize the following merchandising transactions for CSI Systems assuming it uses (a) a periodic inventory system and (b) a perpetual inventory system.

1. On November 1, CSI Systems purchases merchandise for $1,400
on credit with terms of 2_5, n_30, FOB shipping point; invoice dated
November 1.

2. On November 5, CSI Systems pays cash for the November 1 purchase.

3. On November 7, CSI Systems discovers and returns $100 of defective
merchandise purchased on November 1 for a cash refund.

4. On November 10, CSI Systems pays $80 cash for transportation
costs with the November 1 purchase.

5. On November 13, CSI Systems sells merchandise for $1,500
on credit. The cost of the merchandise is $750.

6. On November 16, the customer returns merchandise from the
November 13 transaction. The returned items sell for $200 and cost $100.

Solution Preview

Journalize the following merchandising transactions for CSI Systems assuming it uses (a) a periodic inventory system and (b) a perpetual inventory system.

(a) a periodic inventory system

1. On November 1, CSI Systems purchases merchandise for $1,400
on credit with terms of 2_5, n_30, FOB shipping point; invoice dated
November 1.

Nov. 1 Purchases 1,400
Accounts Payable 1,400

2. On November 5, CSI Systems pays cash for the November 1 purchase.

Nov. 5 Accounts Payable 1,400
Cash 1,400

3. On November 7, CSI Systems discovers and returns $100 of ...

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment of more than 1,800 words of text.

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