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Forrest's Cycle Shop Uses a Perpetual Inventory Accounting System and the Gross

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Essay

Forrest's Cycle Shop uses a perpetual inventory accounting system and the gross method of accounting for sales had the following transactions during the month of July:
 July 3 Sold merchandise to a customer on credit for $600, terms 2/10,n30. The  cost of the merchandise sold was $350. July 4 Sold merchandise to a customer for cash of $425. The cost of the  merchandise was $250.July 6 Sold merchandise to a customer on credit for $1,300, terms 2/10,n/30. The cost of the merchandise sold was $750.July 8 The customer from July 3 returned merchandise with a selling price of $100. The cost of the merchandise returned was $55.July 15 The customer from July 6 paid the full amount due, less any appropriate  discounts earned.  July 31 The customer from July 3 paid the full amount due, less any appropriate  discounts earned. \begin{array} { | l | l | } \hline \text { July } 3 & \begin{array} { l } \text { Sold merchandise to a customer on credit for } \$ 600 \text {, terms } 2 / 10 , \mathrm { n } 30 . \text { The } \\\text { cost of the merchandise sold was } \$ 350 .\end{array} \\\hline \text { July } 4 & \begin{array} { l } \text { Sold merchandise to a customer for cash of } \$ 425 \text {. The cost of the } \\\text { merchandise was } \$ 250 .\end{array} \\\hline \text {July } 6 & \begin{array} { l } \text { Sold merchandise to a customer on credit for } \$ 1,300 , \text { terms } 2 / 10 , \mathrm { n } / 30 . \\\text { The cost of the merchandise sold was } \$ 750 .\end{array} \\\hline \text {July } 8 & \begin{array} { l } \text { The customer from July } 3 \text { returned merchandise with a selling price of } \\\$ 100 \text {. The cost of the merchandise returned was } \$ 55 .\end{array} \\\hline \text {July } 15 & \begin{array} { l } \text { The customer from July } 6 \text { paid the full amount due, less any appropriate } \\\text { discounts earned. }\end{array} \\\hline \text { July } 31 & \begin{array} { l } \text { The customer from July } 3 \text { paid the full amount due, less any appropriate } \\\text { discounts earned. }\end{array} \\\hline\end{array}
Prepare the required journal entries that Forrest's Cycle Shop must make to record these transactions.


Definitions:

Cognitive-behavioral Approaches

A form of psychotherapy that treats problems by modifying dysfunctional emotions, behaviors, and thoughts.

Techniques

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