Perpetual System-Recording Inventory-Related Entries Using the Gross Method
Columbus Inc. maintains a perpetual inventory system and uses the gross method to record purchases. The following transactions all relate to the company's purchase of merchandise inventory on March 1.
a. Purchase of merchandise inventory on March 1 for $33,600 on account, terms 1/10, n/30.
b. Paid cash of $336 for freight charges on March 1 related to the purchase.
c. Returned $252 of merchandise on March 5 and received a credit from the vendor.
d. Paid the balance due to the vendor on March 8.
e. Sold merchandise inventory on March 15 for $21,000 cash with a cost of $14,000
Prepare journal entries for transactions a through e.
• Note: Round your answers to the nearest whole dollar.
Date
a. Mar. 1
Account Name
To record the purchase of inventory
b. Mar. 1
Dr.
Cr.
0
0
0
0
0
0
0
0
To record the payment for freight charges
c. Mar. 5
♡
0
0
♡
0
0
To record the return of merchandise
d. Mar. 8
♡
To record the payment of balance due
e. Mar. 15
To record sale of inventory
A
0
0
0
0
0
0
0
0
0
0
0
0
0
0
To record cost of sale of inventory
