Problem:
The retail business, Fleet Foot Runners, uses the perpetual inventory system. The following transactions for Fleet Foot Runners occurred in the month of May:
3 - Purchase Invoice - purchases 40 pairs of cross-training running shoes from Lau's Sports Warehouse for $39.95 per pair, terms 2/10 net 30. The amount before taxes was $1.598 plus HST of $207.74, total $1,805.74.
7 - Credit Invoice - Returned five pairs of defective running shoes to Lau's Sports Warehouse and received a full credit for these items.
12 - Cheque Copy - Deducted the discount for early payment, and paid the full amount owed to Lau's Sports Warehouse.
22 - Cash Register Tape - Sold five pairs of cross-training running shoes at a retail price of $74.95 per pair. Amount of the cash sales was $374.75 plus HST of $48.72, total $423.47.
29 - Cash Register Tape - A customer returned a pair of the cross-training running shoes after wearing them for one week, complaining that they did not fit properly. The manager of Fleet Foot Runners granted a full cash refund. Unfortunately. the runners were worn and damaged and could not be sold again. (Note: This transaction needs two separate journal entries)
Task
1. In your workbook/notes, journalize the above transactions for Fleet Foot Runners.
2. Journalize the transactions dated May 3, 7, and 12, for Lau's Sports Warehouse. Lau's cost is $19.95 per pair of running shoes.