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Journalizing purchase and sales transactions
journalize the following transactions for soul a following transactions for soul art gift shop. explanations are not required.
feb. 3 purchased $3,300 of merchandise inventory on account under terms 3/10, n/eom and fob shipping point.
feb. 7 returned $900 of defective merchandise purchased on february 3.
feb. 9 paid freight bill of $400 on february 3 purchase.
feb. 10 sold merchandise inventory on account for $4,700. payment terms were 2/15, n/30. these goods cost the company $2,350.
feb. 12 paid amount owed on credit purchase of february 3, less the return and the discount.
feb. 28 received cash from february 10 customer in full settlement of their debt.

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Parrain

Based on the given purchase and sale transactions, the journal entries are:

Date             Account Title                                   Debit                    Credit

Feb 3      Merchandise inventory                   3,300

                            Account payable                                       3,300

Feb 7            Account payable                               900

                    Merchandise inventory                                               900

Feb 9            Merchandise inventory                    400

                      Cash                                                                               400

Feb 10           Account receivable                        4,700

                      Sales revenue                                                             4,700

Feb 10            Cost of goods                                  2,350

                       Freight out                                          370

                      Merchandise inventory                                            2,350

                      Cash                                                                             370

Feb 12             Account payable                             2,400

                       Cash                                                                          2,328

                       Merchandise inventory                                                 72

Feb 28             Cash                                                 4,606

                         Sales discount                                      94

                         Account receivable                                               4,700

What are the journal entries?

When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.

When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.

Because the goods were paid for in the discount period, a 3% discount would apply:

= 2,400 x (1 - 3%)
= $2,328

A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)

= $4,606

Find out more on discount terms at https://brainly.com/question/24086159.

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