Petersen Book Store Entered into the Transactions Listed Below

question 104

Essay

Petersen Book Store entered into the transactions listed below. In the journal provided, prepare Petersen's necessary entries, assuming use of the perpetual inventory system.
July 6 Purchased $1,600 of merchandise on credit, terms n/30.
8 Returned $100 of the items purchased on July 6.
9 Paid freight charges of $90 on the items purchased July 6.
19 Sold merchandise on credit for $4,400, terms 1/10, n/30. The merchandise had an inventory cost of $2,700.
22 Of the merchandise sold on July 19, $300 of it was returned. The items had cost the store $150.
28 Received payment in full from the customer of July 19.
31 Paid for the merchandise purchased on July 6.

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Definitions:

Partnership Act

A legal framework governing the rights, duties, and liabilities of partners in a business partnership.

Federal Government

A system of government where powers are divided between a central government and several regional governments.

Provincial Partnership Acts

Statutes enacted by provincial governments in Canada that govern the formation, operation, and dissolution of partnerships.

Unlimited Liability

A legal structure where business owners are personally responsible for all of the business's debts, without limitation to their personal assets.