Reid Art Supply Company Uses a Perpetual Inventory System $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

question 98

Essay

Reid Art Supply Company uses a perpetual inventory system.The company had the following transactions during August,2012:
Aug.5 Reid Company purchased $2,900 of merchandise on account.Freight and credit terms were FOB shipping point,3/15,n/60.
Aug.9 Reid Company paid transportation costs of $440 for the Aug.5 purchase.
Aug.10 Reid Company returned $600 of defective merchandise that had been purchased on Aug.5.
Aug.15 Reid Company paid for the merchandise purchased on Aug.5.
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Please provide the journal entry on Aug.9.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Worksheet

A worksheet in accounting is a document used to compile information from ledger accounts for the purpose of preparing financial statements.

Control Account

An account used in accounting to summarize the total balances of multiple individual accounts, facilitating internal checks and balances.

Special Journals

Customized accounting journals used for recording and categorizing specific types of transactions such as sales, purchases, and cash receipts in an efficient manner.