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Transaction Journals: Perpetual Inventory System

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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.

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

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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 ...

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