Explore BrainMass

Explore BrainMass

    Transaction Journals: Perpetual Inventory System

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Britt Jewelers had the following transactions in April. Prepare journal entries for these transactions assuming Britt Jewelers uses a perpetual inventory system.

    Apr. 2: Britt received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping point. Britt paid the freight bill amounting to $2,000.
    Apr. 4: Britt returned $2,500 of the merchandise billed on April 2 because it was defective.
    Apr. 5: Britt sold $8,000 of merchandise on account, terms 3/15 n/30. The cost of the merchandise sold was $5,500.
    Apr. 10: Britt paid the invoice dated April 2, less the return and the discount.
    Apr. 15: A customer returned $2,500 of merchandise sold on April 5. The cost of the returned merchandise was $1,450.
    Apr. 19: Britt received payment on the remaining amount due from the sale of April 5, less the return and the discount.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:14 pm ad1c9bdddf
    https://brainmass.com/business/inventory/transaction-journals-perpetual-inventory-system-36377

    Attachments

    Solution Preview

    Please refer to the attached file response, which is also presented below (you might want to refer to the attached response, however, as the journal entries are in better form). Good luck with your studies and take care.

    Britt Jewelers had the following transactions in April. Prepare journal entries for these transaction assuming Britt Jewelers uses a perpetual inventory system.
    Apr. 2 Britt received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping point. Britt paid the freight bill amounting to $2,000.
    4 Britt returned ...

    Solution Summary

    This solution provides the journals entries for Britt Jewelers for transactions for the month of April using a perpetual inventory system.

    $2.49

    ADVERTISEMENT