Following are the merchandising transactions for Dollar Store.
a) Nov. 1 Dollar Store purchases merchandise for $1,100 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
b) 5 Dollar Store pays cash for the November 1 purchase.
c) 7 Dollar Store discovers and returns $100 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.
d) 10 Dollar Store pays $55 cash for transportation costs for the November 1 purchase.
e) 13 Dollar Store sells merchandise for $1,188 with terms n/30. The cost of the merchandise is $594.
f) 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $270 and cost $135; the items were not damaged and were returned to inventory.
Required:
Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.