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    Prepare journal entries

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    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.
    Exercise 5-13A

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    Solution Summary

    This posting journalizes merchandising transactions for CSI Systems assuming it uses (a) a periodic inventory system and (b) a perpetual inventory system.

    $2.19