Journalize the Following Purchase Transactions for Rocky's Swimming Pool Supply

question 159

Essay

Journalize the following purchase transactions for Rocky's Swimming Pool Supply Company using the periodic inventory system. Explanations are not required.
$$\begin{array} { | l | l | } \hline \text { May 2 } & \begin{array} { l } \text { Purchased } \$ 5,280 \text { of merchandise inventory on account under } \\\text { terms } 3 / 10 , \mathrm { n } / 30 \text { and FOB shipping point. }\end{array} \\\hline \text { May 6 } & \text { Returned } \$ 675 \text { of defective merchandise purchased on May 2. } \\\hline \text { May 8 } & \text { Paid freight bill of } \$ 120 \text { on May } 2 \text { purchase. } \\\hline \text { May 12 } & \text { Paid amount owed on credit purchase on May } 2 . \\\hline\end{array}$$

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Definitions:

Par Value

A nominal value assigned to a security or stock, often used in accounting to represent the standard or face value.

Shares

Represent units of ownership interest in a corporation or financial asset, providing an equitable distribution of any profits, if declared, in the form of dividends.

Date Of Payment

The specific day on which a payment is due to be made or actually made.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.