Problem: Britt Jewelers had the following transactions in April. Prepare journal entries for these transactions assuming Britt Jewelers uses a perpetual inventory system.
Apr. 2 Britt received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping point. Britt paid the freight bill amounting to $2,000.
4 Britt returned $2,500 of the merchandise billed on April 2 because it was defective.
5 Britt sold $8,000 of merchandise on account, terms 3/15 n/30. The cost of the merchandise sold was $5,500.
10 Britt paid the invoice dated April 2, less the return and the discount.
15 A customer returned $2,500 of merchandise sold on April 5. The cost of the returned merchandise was $1,450.
19 Britt received payment on the remaining amount due from the sale of April 5, less the return and the discount.
Journal
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Date
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Description
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Debit
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Credit
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a)
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b)
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c)
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d)
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e)
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f)
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g)
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