Journal entries for merchandise transactions – perpetual system Rockford Corporation, which began business on August 1, cells on terms of 2/10, n/30. Credit terms for its purchases very with the supplier. Selected transactions for August are given below. Unless noted all trans actions are on account and involve merchandise held for resale the perpetual inventory system is used.
Aug 1 Purchased merchandise from Norris Inc., $3400, terms 2/10, and n/30
5 paid freight on shipment from Norris Inc., $160
7 sold merchandise to Denton Corporation, $4800 ($3400 cost).
7 paid $240 freight on August 7 shipment and build Denton for the charges.
9 returned $600 worth of the merchandise purchased August 1 from Norris Inc. because it was defective. Norris approved the return
9 received $800 of return merchandise ($600 cost) from the corporation. Rockford approved the return.
10 paid Norris, Inc., the amount due
14 purchased from chambers Inc., goods with the price of $8000. Terms 1/10, and n/30
15 paid freight on shipment from chambers Inc. $280
17 received the amount due from the corporation.
18 sold merchandise to Weber Inc. $9600 ($6600 cost)
20 paid $320 freight on August 18 shipment and build Weber for the charges
24 paid chambers Inc. the amount due
28 received the amount due from Weber Inc.
Required prepare journal entries for these transactions from Rockford Corporation