Gadget Palace is a retailer selling unique hardware. Gadget Palace uses a perpetual inventory system. Journalize the following transactions: July 5 Gadget Palace purchases inventory for sale from Turbo Tools for $11,400 with terms 2/10, n/30. 6 Gadget Palace pays Fast Truck Transport $75 for freight on the July 5 order. 8 Gadget Palace receives a credit memo from Turbo Tools for $215 for damaged merchandise. 15 Gadget Palace pays Turbo Tools the balance due. If required, round your answers to two decimal places. July 5 July 6 July 8 July 15
Q: Prepare journal entries to record the following transactions for a retail store. The company uses a…
A: Journal entry refers to recording and classifying business transactions into books of accounts…
Q: Levine Company uses the perpetual inventory system and allows customers to use two credit cards in…
A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…
Q: Prepare journal entries to record the following transactions for a retail store. The company uses a…
A: 1. Discount received for purchase made on April 2 Purchase = 4,100 Goods returned = 700 Net value…
Q: Goods costing $2,500 are purchased on account on July 15 with credit terms of 2/10, n/30. On July…
A: As per the perpetual inventory system, a detailed and continuous record of inventory purchased or…
Q: PURCHASES JOURNAL
A: Definition: Merchandise: It is a practice which contributes to sale of products to retailers,…
Q: Panasonic Inc is an office supply store selling computers. The company uses a perpetual inventory…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following…
A: The gross profit is calculated as difference between sales and cost of goods sold.
Q: Help me
A: Perpetual inventory system: In this system the inventory is recorded on a regular basis. The…
Q: Using the accounts listed below, record journal entries for the following transactions of Furniture…
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: Marshall Supplies is a janitorial supply store that uses perpetual inventory. Journalize the…
A: Date Accounts title and Explanation Debit ($) Credit ($) 4-Jul Merchandise Inventory $8,500.00…
Q: Marshall Supplies is a janitorial supply store that uses perpetual inventory. Journalize the…
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…
Q: On September 1, Ayayai Office Supply had an inventory that included a variety of calculators. The…
A: The question is based on the concept of Financial Accounting.
Q: John’s Specialty Store uses a perpetual inventory system. The following are some inventory…
A: Journal entries are given below:
Q: Reineman Supply Company uses a periodic inventory system. During September, the following…
A: Purchase value(3rd sep.)=Number of units×Per unit=90×$25=$2,250
Q: John’s Specialty Store uses a perpetual inventory system. The following are some inventory…
A: As per this system (Perpetual inventory), the transactions made in May are recorded and inventory is…
Q: Fashion Jewelers uses the perpetual inventory system. On April 2, Fashion sold goods with a cost of…
A: The Term 4/15 means customer is eligible for 4% discount if payment made within 15 days. The amount…
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following…
A: Journal entry: It is often defined as the recording of transactions in the first or the primary book…
Q: Levine Company uses the perpetual inventory system. Prepare journal entries to record the following…
A: Journalize the entries as below: In the books of Levine Company
Q: June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/45. June 4 Pay…
A: Period-end Adjustment Entry: Date General Ledger Debit Credit June 30 Income Summary... Dr.…
Q: An electronics retailler purchases $25,000 of computers on account for resale. The retailer returns…
A: There is two method of inventory: 1. Periodic inventory method: It is a inventory valuation method…
Q: eineman Supply Company uses a periodic inventory system. During September, the following…
A: Step 1 Journal is the part of bookkeeping.
Q: John's Specialty Store uses a periodic inventory system. The following are some inventory…
A: Solution: Under periodic inventory system, inventory records are not updated for each and every…
Q: Esperado Furnishings are retailers who purchase and sell household furnishings, including…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Inamra Inc. is a clothing manufacturer. The firm uses a periodic inventory system. Inamra…
A: Whenever goods are sold, cash account is debited and sales a/c is to be credited. In case of sales…
Q: Esperado Furnishings are retailers who purchase and sell household furnishings, including table…
A: "FIFO" stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold…
Q: Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Sundance Systems has the following transactions during July.July 5 Purchases 40 LCD televisions on…
A: Under the perpetual inventory system, inventory account is used to record purchases.
Q: Larkspur, Inc. uses a perpetual inventory system. Its beginning inventory consists of 210 units that…
A: Perpetual inventory system is an inventory system in which all transactions related to inventory…
Q: On April 5, a customer returns 25 bicycles with a sales price of $300 per bike to Barrio Bikes. Each…
A: Perpetual Inventory System In perpetual inventory system whenever the firm took the decision of…
Q: Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory…
A: Calculation under LIFO Date Units Amount Amount Jan 1 Opening 100 21 2,100…
Q: Amy Douglas owns a business called Douglas Distributors. The following transactions took place…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Oriole Office Supply uses a perpetual inventory system. On September 12, Oriole Office Supply sold…
A: Inventory: It is the goods and material a business holds for sale. At the time of accounting…
Q: Marshall Supplies is a janitorial supply store that uses a perpetual inventory system. Journalize…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Executive Suites, Inc., uses a perpetual inventory system. This system includes a perpetual…
A: A journal entry shows the summary and recording of all business transaction of the company during a…
Q: ohn’s Specialty Store uses a perpetual inventory system. The following are some inventory…
A: Journal entries are given below:
Q: Record the following transactions for Sparky's Pet Shop using the general journal form provided…
A: Under the perpetual inventory system, The transactions related to the inventory like purchase, sales…
Q: Pets Unlimited sells pet supplies to retailers. The company uses a perpetual inventory. Journalize…
A: Sales discounts = Sales revenue x rate of discount Sales discounts (June 1) = $6,250*2% = $125…
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following…
A: Income statement is prepared to show the net income or net loss of the company. It includes the…
Q: Crane Inc. is a retailer operating in British Columbia. Crane uses the perpetual inventory system.…
A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…
Q: Mayfair Co. completed the following transactions and uses a perpetual inventory system. June 4 Sold…
A: Funds refers to an amount of money which is set aside or saved by individuals, government,…
Q: Levine Company uses the perpetual inventory system and allows customers to use two credit cards in…
A: The perpetual inventory system is the system of recording the transaction in inventory on a…
Q: On April 5, a customer returns 22 bicycles with a sales price of $250 per bike to Barrio Bikes. Each…
A: Inventory: It refers to the items held by an organization which were in various forms like raw…
Q: ABC is a Wholesale Merchandise trader. He uses periodic inventory system. He received an order from…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On April 5, a customer returns 16 bicycles with a sales price of $270 per bike to Barrio Bikes. Each…
A: A. Date Accounts Debit Credit April 5 Sales return and allowances (16 bicycles x $270 per bike)…
Q: Crane Inc. is a retailer operating in British Columbia. Crane uses the perpetual inventory system.…
A: 1. Last-in, first-out (LIFO) cost flow assumption - Under LIFO Method, Inventory purchased last is…
Q: On April 3, a customer returned $600 of merchandise that had been purchased withcash to Ryan…
A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Mays Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, Mays Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales and purchase of merchandise are as follows: Jan. 2Bought nine Matte Nail Color Kits from Mejia, Inc., 450, invoice no. 4521, dated January 1; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 87.50 (total 537.50). 5Bought 30 Perfume Cocktail Rings from Braun, Inc., 1,200, invoice no. 37A, dated January 3; terms 2/10, n/30; FOB destination. 8Sold two Matte Nail Color Kits on account to J. Herbert, sales slip no. 113, 110, plus sales tax of 8.80, total 118.80. 11Received credit memo no. 455 from Braun, Inc., for merchandise returned, 315.25. 18Bought 15 Eye Palettes from Vargas, Inc., 660, invoice no. 910, dated January 14; terms net 30; FOB destination. 23Sold four Eye Palettes on account to T. Cantrell, sales slip no. 114, 200, plus sales tax of 16, total 216. 26Issued credit memo no. 12 to T. Cantrell for merchandise returned, 50 plus 4 sales tax, total 54. Required 1. If using Working Papers, open the following accounts in the accounts receivable ledger and record the balances as of January 1: T. Cantrell, 86.99; J. Hebert, 63.47. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, open the following accounts in the accounts payable ledger and record the balances as of January 1: Braun, Inc., 513.20; Mejia, Inc., 113.40; Vargas, Inc., 67.15. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. If using Working Papers, record the January 1 balances in the general ledger as given: Accounts Receivable 113 controlling account, 150.46; Accounts Payable 212 controlling account, 693.75; Sales Tax Payable 214, 237.89. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 4. Record the transactions in the general journal. If using Working Papers, begin on page 17. 5. Post the entries to the general ledger and accounts receivable ledger or accounts payable ledger as appropriate. 6. Prepare a schedule of accounts receivable. 7. Prepare a schedule of accounts payable. 8. Compare the totals of the schedules with the balances of the controlling accounts.Lowerys Pet Depot records purchase transactions in the general journal. The company is located in Cleveland, Ohio. In addition to a general ledger, Lowerys Pet Depot also uses an accounts payable ledger. Transactions for October related to the purchase of merchandise are as follows: Oct. 3Bought 12 Automatic Fish Feeders from Barrera Company, 959.88, invoice no. 5493, dated October 2; terms net 30 days; FOB shipping point, freight prepaid and added to the invoice, 79.45 (total 1,039.33). 4Bought two 18 x 18 Terrarium Stands from Hickman Company, 259.98, invoice no. 2JYX, dated October 2; terms 2/10, n/30; FOB destination. 7Bought four Chinchilla Bath Houses from Baldwin, Inc., 67.96, invoice no. 4183, dated October 6; terms 1/10, n/30; FOB destination. 10Received credit memo no. 123 from Baldwin, Inc., for merchandise returned, 13.94. Oct. 14Bought 20 Zoo Slider Hoods from Douglas, Inc., 2,599.80, invoice no. X431, dated October 12; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 140.50 (total 2,740.30). 15Bought four Hanging Bird Baths from Krause, Inc., 71.96, invoice no. A499, dated October 11; terms net 60 days; FOB destination. 24Bought eight Automatic Cat Litter Boxes from Villa Manufacturing, 2,399.92, invoice no. 4429, dated October 21; terms net 30 days; FOB destination. 27Received credit memo no. 452 from Villa Manufacturing for merchandise returned, 346.78. Required 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the October 1 balances, if any, as given: Baldwin, Inc., 46.57; Barrera Company, 743.15; Douglas, Inc., 615.20; Hickman Company; Krause, Inc., 23.45; Villa Manufacturing, 725.64. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, record the October 1 balances in the general ledger as given: Accounts Payable 212 controlling account, 2,154.01; Purchases 511, 2,485.12; Purchases Returns and Allowances 512, 287.52; Freight In 514, 48.57. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. Record the transactions in the general journal. If using Working Papers, begin on page 95. 4. Post to the general ledger and the accounts payable ledger. 5. Prepare a schedule of accounts payable, and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.Shirleys Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, Shirleys Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales and purchase of merchandise are as follows: Jan. 3Bought 30 Mango Bath and Shower Gels from Madden, Inc., 660, invoice no. 3487, dated January 1; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 125.43 (total 785.43). 4Bought ten Beauty Candle Travel Sets from Calhoun Candles, Inc., 420, invoice no. 4513, dated January 1; terms net 45; FOB destination. 12Sold four Mango Bath and Shower Gels on account to R. Kielman, sales slip no. 1456, 120, plus sales tax of 9.60, total 129.60. 13Received credit memo no. 8715 from Calhoun Candles, Inc., for merchandise returned, 84. 21Bought five Winter Skin Essentials Kits from Whitney and Waters, 197.50, invoice no. A875, dated January 18; terms 2/15, n/45; FOB destination. 25Sold three Winter Skin Essentials on account to A. Benner, sales slip no. 1457, 135.75, plus sales tax of 10.86, total 146.61. 27Issued credit memo no. 33 to A. Benner for merchandise returned, 45.25 plus 3.62 sales tax, total 48.87. Required 1. If using Working Papers, open the following accounts in the accounts receivable ledger and record the balances as of January 1: A. Benner, 45.77; R. Kielman, 175.39. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, open the following accounts in the accounts payable ledger and record the balances as of January 1: Calhoun Candles, Inc., 355.23; Madden, Inc., 573.15; Whitney and Waters, 50.25. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. If using Working Papers, record the January 1 balances in the general ledger as given: Accounts Receivable 113 controlling account, 221.16; Accounts Payable 212 controlling account, 978.63; Sales Tax Payable 214, 128.45. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 4. Record the transactions in the general journal. If using Working Papers, begin on page 25. 5. Post the entries to the general ledger and accounts receivable ledger or accounts payable ledger as appropriate. 6. Prepare a schedule of accounts receivable. 7. Prepare a schedule of accounts payable. 8. Compare the totals of the schedules with the balances of the controlling accounts.
- The following transactions relate to Hawkins, Inc., an office store wholesaler, during June of this year. Terms of sale are 2/10, n/30. The company is located in Los Angeles, California. June 1Sold merchandise on account to Hendrix Office Store, invoice no. 1001, 451.20. The cost of the merchandise was 397.06. 3Bought merchandise on account from Krueger, Inc., invoice no. 845A, 485.15; terms 1/10, n/30; dated June 1; FOB San Diego, freight prepaid and added to the invoice, 15 (total 500.15). 10Sold merchandise on account to Ballard Stores, invoice no. 1002, 2,483.65. The cost of the merchandise was 2,235.29. 13Bought merchandise on account from Kennedy, Inc., invoice no. 4833, 2,450.13; terms 2/10, n/30; dated June 11; FOB San Francisco, freight prepaid and added to the invoice, 123 (total 2,573.13). 18Sold merchandise on account to Lawson Office Store, invoice no. 1003, 754.99. The cost of the merchandise was 671.94. 20Issued credit memo no. 33 to Lawson Office Store for merchandise returned, 103.25. The cost of the merchandise was 91.89. 25Bought merchandise on account from Villarreal, Inc., invoice no. 4R32, 1,552.30; terms net 30; dated June 18; FOB Santa Rosa, freight prepaid and added to the invoice, 84 (total 1,636.30). 30Received credit memo no. 44 for merchandise returned to Villarreal, Inc., for 224.50. Required Record the transaction in the general journal using the perpetual inventory system. If using Working Papers, use pages 25 and 26.Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals and prove the equality of the debit and credit totals.Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.
- Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.West Bicycle Shop uses a three-column purchases journal. The company is located in Topeka, Kansas. In addition to a general ledger, the company also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows: Jan. 4 Bought fifty 10-speed bicycles from Nielsen Company, 4,775, invoice no. 26145, dated January 3; terms net 60 days; FOB Topeka. 7 Bought tires from Barton Tire Company, 792, invoice no. 9763, dated January 5; terms 2/10, n/30; FOB Topeka. 8 Bought bicycle lights and reflectors from Gross Products Company, 384, invoice no. 17317, dated January 6; terms net 30 days; FOB Topeka. 11 Bought hand brakes from Bray, Inc., 470, invoice no. 291GE, dated January 9; terms 1/10, n/30; FOB Kansas City, freight prepaid and added to the invoice, 36 (total 506). 19 Bought handle grips from Gross Products Company, 96.50, invoice no. 17520, dated January 17; terms net 30 days; FOB Topeka. 24 Bought thirty 5-speed bicycles from Nielsen Company, 1,487, invoice no. 26942, dated January 23; terms net 60 days; FOB Topeka. 29 Bought knapsacks from Davila Manufacturing Company, 304.80, invoice no. 762AC, dated January 26; terms 2/10, n/30; FOB Topeka. 31 Bought locks from Lamb Safety Net, 415.47, invoice no. 27712, dated January 26; terms 2/10, n/30; FOB Dodge City, freight prepaid and added to the invoice, 22 (total 437.47). Required 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the January 1 balances, if any, as given: Barton Tire Company, 156; Bray, Inc.; Davila Manufacturing Company, 82.88; Gross Products Company; Lamb Safety Net, 184.20; Nielsen Company. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL. 2. If using Working Papers, record the balance of 423.08 in the Accounts Payable 212 controlling account as of January 1. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL. 3. Record the transactions in the purchases journal. If using Working Papers, begin on page 81. 4. Post to the accounts payable ledger daily. Skip this step if using CLGL. 5. Post to the general ledger at the end of the month. Skip this step if using CLGL. 6. Prepare a schedule of accounts payable, and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of the debit and credit totals.
- John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 561. Year-end adjustment data for the Waikiki Surf Shop are shown below. Neff uses the periodic inventory system. Year-end adjustment data are as follows: (a, b)A physical count shows that merchandise inventory costing 51,800 is on hand as of December 31, 20--. (c, d, e)Neff estimates that customers will be granted 2,000 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,200. (f)Supplies remaining at the end of the year, 600. (g)Unexpired insurance on December 31, 2,600. (h)Depreciation expense on the building for 20--, 5,000. (i)Depreciation expense on the store equipment for 20--, 3,000. (j)Wages earned but not paid as of December 31, 1,800. (k)Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December 31 is 3,000. Required 1. Prepare a year-end spreadsheet. 2. Journalize the adjusting entries. 3. Compute cost of goods sold using the spreadsheet prepared for part (1).Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to Osbourne, Inc., invoice no. 1128, 563.17. 14Sold merchandise on account to Ortiz Company, invoice no. 1129, 823.50. 20Sold merchandise on account to Bailey Corporation, invoice no. 1130, 2,350.98. 24Sold merchandise on account to Shannon Corporation, invoice no. 1131, 1,547.07. Assume that Toby Company had beginning balances on March 1 of 3,569.80 (Sales 411) and 2,450.39 (Accounts Receivable 113). Record the sales of merchandise on account in the sales journal (page 24) and then post to the general ledger.JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY SYSTEM Sunita Computer Supplies entered into the following transactions. Prepare journal entries under the perpetual inventory system. May 1 Purchased merchandise on account from Anju Enterprises, 200,000. 8 Purchased merchandise for cash, 100,000. 15 Sold merchandise on account to Salils Pharmacy for 8,000. The merchandise cost 5,000.