The following transactions took place at Fine Fashions Outlet during July 2019. Fine Fashions Outlet uses a perpetual inventory system. DATE TRANSACTIONS July 1 Purchased dresses for $4,400 plus a freight charge of $700 from Fashion Expo, Invoice 101, dated July 1; the terms are 2/10, n/30. 5 Sold two dresses on account to Alice Chu, terms 1/10, n/30; issued Sales Slip 788 for $900. The cost of the dresses sold was $720. 7 Received Credit Memorandum 210 for $850 from Fashion Expo for damaged dresses returned; the goods were purchased on Invoice 101 dated July 1. 9 Accepted a return of a dress from Alice Chu; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $400. The cost of the returned dress was $240. 10 Issued Check 1255 to pay the amount due to Fashion Expo for Invoice 101, dated July 1, less the return of July 7 and less the cash discount. 15 Received payment from Alice Chu for the sale of July 5, less the return of July 9 and less the cash discount. 15 Recorded sales on credit cards for the two-week period ended July 15, $13,000; the bank charges a 3 percent fee on all credit card sales. The cost of merchandise sold was $10,400. 17 Purchased merchandise on account from Fashion Wholesalers for $5,000, subject to trade discounts of 40 percent and 10 percent, terms 1/10, n/30, Invoice 2078. 26 Paid amount owed to Fashion Wholesalers for the purchase of July 17, Check 1285. Record the transactions in a general journal.

Respuesta :

Answer:

July 1 Debit inventory 5100 credit Accounts payable 5100

5 July Debit Accounts receivables 900 credit sales 900

debit cost of sales 720 credit inventory 720

7 July Debit Accounts payable 850, credit inventory 850

9 July Debit sales allowance 400, credit Accounts receivables 400

debit inventory 240 credit cost of sales 240

10 July Debit Accounts payable 4165 credit bank 4165

15. July Debit Bank 13000 credit sales 13000

debit cost of sales 10400 credit inventory 10400

debit bank charges 390 credit bank 390

17 debit  merchandise 5000 credit Accounts payable 5000

26 Debit Accounts payable 4950 credit bank 4950

Explanation:

1 july inventory is the total of purchases plus freight charges.

10 july the discount is on the remaining amount after the goods returned because goods returned had decreased the amount owing.

26 july the trade discounts are for when buying and paying same day when it it is on account there can only be settlement discount