Neutron Uses a Periodic Inventory System

question 17

Essay

Neutron uses a periodic inventory system.Prepare general journal entries to record the following transactions for Neutron:
$\begin{array}{|l|l|l|}\hline \text { June } & 10 & \begin{array}{l}\text { Neutron purchased merchandise on credit from Proton for } \$ 9,000 \text {, terms } 2 / 10, \\\mathrm{n} / 30 . \text { FOB destination. Transportation costs of } \$ 350 \text { were paid by Proton. }\end{array} \\\hline & 12 & \text { Neutron returned } \$ 600 \text { of merchandise from the June } 10 \text { purchase. } \\\hline & 19 & \text { Neutron paid Proton for the June } 10 \text { purchase. }\\\hline \end{array}$

---

Definitions:

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.

Repayments

The action of paying back a loan or debt.

Capital Flight

The rapid movement of large sums of money or capital out of a country, typically to avoid economic instability or unfavorable investing conditions.

Financial Capital

Resources, including money and other assets, used by businesses to facilitate and finance their operations.