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 117

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.5.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Touch

A sensation perceived through the skin when it comes into contact with an external object, providing information about texture, temperature, and pressure.

Sensory Adaptation

The process by which a sensory system becomes insensitive to a constant stimulus over time.

Sensory Receptors

Highly specialized cells in the sense organs that detect and respond to one type of sensory stimulus—light, sound, or odor, for example—and transduce (convert) the stimuli into neural impulses.

Stimulus

A stimulus is any event or situation that evokes a response from an organism.