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Serene Spa Sales Uses the Perpetual Inventory System and the Gross

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Essay

Serene Spa Sales uses the perpetual inventory system and the gross method of accounting for purchases and sales, and had the following transactions during August.
 Aug 1  Sold merchandise on credit for $5,000, terms 3/10,n/30. The items sold had a  cost of $3,500.3 Purchased merchandise for cash, $2,720.4 Purchased merchandise on credit for $2,600, terms 1/20,n/30.5 Issued a credit memorandum for $3,000 to a customer who returned  merchandise purchased July 20. The returned items had a cost of $2,010.10 Received payment for merchandise sold August 1.15 Received a credit memorandum from the seller for the return of defective  merchandise purchased on August 4 for $600.18 Paid freight charges of $200 for merchandise ordered last month. (FOB  shipping point) 23 Paid for the merchandise purchased August 4 less the portion that was  returned. 24 Sold merchandise on credit for $7,000, terms 2/10,n/30. The items had a cost  of $4,90031 Received payment for merchandise sold on August 24.\begin{array}{|l|l|}\hline \text { Aug 1 } & \begin{array}{l}\text { Sold merchandise on credit for } \$ 5,000, \text { terms } 3 / 10, \mathrm{n} / 30 . \text { The items sold had a } \\\text { cost of } \$ 3,500 .\end{array} \\\hline 3 & \text { Purchased merchandise for cash, } \$ 2,720 . \\\hline 4 & \text { Purchased merchandise on credit for } \$ 2,600, \text { terms } 1 / 20, \mathrm{n} / 30 . \\\hline 5 & \begin{array}{l}\text { Issued a credit memorandum for } \$ 3,000 \text { to a customer who returned } \\\text { merchandise purchased July } 20 . \text { The returned items had a cost of } \$ 2,010 .\end{array} \\\hline 10 & \text { Received payment for merchandise sold August } 1 . \\\hline 15 & \begin{array}{l}\text { Received a credit memorandum from the seller for the return of defective } \\\text { merchandise purchased on August } 4 \text { for } \$ 600 .\end{array} \\\hline 18 & \begin{array}{l}\text { Paid freight charges of } \$ 200 \text { for merchandise ordered last month. (FOB } \\\text { shipping point) }\end{array} \\\hline 23 & \begin{array}{l}\text { Paid for the merchandise purchased August } 4 \text { less the portion that was } \\\text { returned. } \\\end{array} \\ \hline24 & \begin{array}{l}\text { Sold merchandise on credit for } \$ 7,000 \text {, terms } 2 / 10, n / 30 . \text { The items had a cost } \\\text { of } \$ 4,900\\ \end{array} \\\hline 31 & \text { Received payment for merchandise sold on August } 24 .\\\hline\end{array}
Required:
Prepare the general journal entries to record these transactions.


Definitions:

Base-Rate Information

Statistical information that represents the prevalence or general occurrence of a particular trait, behavior, or event within a larger population.

Availability Heuristic

An instinctive mental tactic that uses the nearest instances that surface in thought while considering a certain topic, theory, strategy, or judgment.

Base-Rate Information

Base-rate information refers to the statistical likelihood of an event or characteristic within a given population, used in decision-making processes.

Stroop Effect

A demonstration of cognitive interference where the brain's reaction time slows down when processing conflicting information, such as reading the word "green" printed in red color.

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