I was wondering if someone could help me to solve this problem. I am having a hard time understanding accounting,
Question #4:
The following events pertain to Turner Company for January 2011. The company uses the perpetual inventory method. Record the following events in the general journal.
1) Jan 3. Purchased $20,000 of merchandise inventory from a supplier, Kelly Distributors, Inc. The terms of the purchase: 2/10, n/30 and FOB shipping point.
2) Jan 5. Paid $450 cash for freight to trucking company to have goods shipped from Kelly Distributors, Inc.
3) Jan 7. (a) Sold merchandise for $4,000 to a customer on account. (b) The merchandise had cost Turner $2,800.
4) Jan 10. Returned $2,500 of defective merchandise to Kelly Distributors, Inc.
5) Jan. 11. Paid amount due on account to Kelly Distributors for merchandise purchased on Jan. 3.
6) Jan. 12. a) Accepted a return of $750 of the goods sold on Jan. 7. b) The cost of these goods was $550.
Question #4:
The following events pertain to Turner Company for January 2011. The company uses the perpetual inventory method. Record the following events in the general journal.
1) Jan 3. Purchased $20,000 of merchandise inventory from a supplier, Kelly Distributors, Inc. The terms of the purchase: 2/10, n/30 and FOB shipping point.
2) Jan 5. Paid $450 cash for freight to trucking company to have goods shipped from Kelly Distributors, Inc.
3) Jan 7. (a) Sold merchandise for $4,000 to a customer on account. (b) The merchandise had cost Turner $2,800.
4) Jan 10. Returned $2,500 of defective merchandise to Kelly Distributors, Inc.
5) Jan. 11. Paid amount due on account to Kelly Distributors for merchandise purchased on Jan. 3.
6) Jan. 12. a) Accepted a return of $750 of the goods sold on Jan. 7. b) The cost of these goods was $550.