question archive John Jackson owns a bike business called John's Rolling Stock
John Jackson owns a bike business called John's Rolling Stock
Subject:BusinessPrice: Bought3
John Jackson owns a bike business called John's Rolling Stock. The following transactions took place during May of the current year. May 5 8 9 Purchased merchandise on account from Wheelhouse, $4,300. Credit terms 2/10, n/30. Paid freight charge on merchandise purchased, $230. Sold merchandise on account to High Handle Bar, $3,500. Credit terms 1/15, n/30. The merchandise cost $2,500. Received a credit memo from Wheelhouse for merchandise returned, $650. Paid Wheelhouse full amount owed. Issued a credit memo to High Handle Bar for merchandise returned, $820. The cost of the merchandise is $550. Received payment in full from High Handle Bar. 10 14 22 29 Required: Journalize the above transactions in a general journal using the periodic inventory 1. method. 2. Journalize the above transactions in a general journal using the perpetual inventory method.
