A Merchandiser, Following the Perpetual Inventory System, Has the Following

question 157

Essay

A merchandiser, following the perpetual inventory system, has the following transactions during August, 2015:
$$\begin{array} { l l l } \text { Date } & \text { Trenstetion } & \text { Amount (\$) } \\\hline \text { Aug. 5 } & \text { Purchases on account } & 300,000 \\\text { Aug. } 9 & \text { Paid for transportation of goods purchased } & 25,000 \\\text { Aug.10 } & \text { Purchase returned } & 20,000 \\\text { Aug.15 } & \text { Paid for goods purchased on August 5 } & ?\end{array}$$ Credit terms of invoice are 2/15, n/45. Give journal entries for the above transactions.

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Definitions:

Owner

An individual or entity that possesses legal right and title to property, assets, or a business.