Journalize the Following Transactions Using the Perpetual Inventory Method

question 135

Essay

Journalize the following transactions using the perpetual inventory method.
Aug. 10 Sold $4,100 of inventory for $5,100 for Oden Corp. with terms 2/15, n/30
Aug. 12 Received payment of $1,000 cash in full from Jany Smith for a July 1 sale
with terms 2/10 n/30
Aug. 15 Granted Oden Corp. an allowance of $400 for Aug. 10 transaction for minor
defects in the goods shipped
Aug. 23 Received payment in full from Oden Corp. for the Aug. 10 sale

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Definitions:

Compounded Monthly

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.

Present Value

The current value of a deposit that is made in the present time.

Periodic Deposit Investment

An investment strategy involving regular, fixed-amount contributions into an investment account.

Simple Interest

Interest that is calculated on the principal in an account, using the formula I = prt.