Record the Following Transactions for Sparky's Pet Shop Using the General

question 127

Essay

Record the following transactions for Sparky's Pet Shop using the general journal form provided below. Assume Sparky's uses a perpetual inventory system. Omit transaction descriptions from entries.? $$\begin{array} { | c | l | } \hline \textbf { Date } & ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \textbf { Transaction } } \\\hline \text { Aug. } 1 & \text { Purchased } \$ 6,000 \text { of merchandise on account, terms } 2 / 10 , \mathrm { n } / 30 . \\\hline 3 & \text { Returned } \$ 1,500 \text { of merchandise purchased on August } 1 \text { due to defects. } \\\hline 7 & \begin{array} { l } \text { Recorded cash sales for the first week of August, } \$ 9,750 ; \text { cost of the } \\\text { merchandise was } \$ 4,000 .\end{array} \\\hline 10 & \begin{array} { l } \text { Made sale on account to a local breeder for } \$ 500 , \text { terms } 1 / 10 , \text { net } 30 ; \text { cost of } \\\text { the merchandise was } \$ 200 .\end{array} \\\hline 11 & \text { Paid for the merchandise purchased on August } 1 , \text { less return. } \\\hline 20 & \text { Received payment from sale of August } 10 . \text { The customer took the discount. } \\\hline\end{array}$$

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Definitions:

Continuous Budgets

Budgets that are continuously updated by adding a new budget period as the last one is completed, thus always having a full period's financial plan.

Communicating Objectives

The process of clearly and effectively sharing goals and targets with relevant stakeholders or team members.

Ending Inventory

The total value of all inventory still available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting the cost of goods sold.

Ethical Budgeting

The practice of creating budgets that reflect moral principles and considerations, ensuring resources are allocated in a fair and responsible manner.