Hardware Store completed the following transactions in December 2019. It usesperpetual inventory system. It records both purchase and sales at gross amount.1 DecPurchased goods from Jerry Wholesale for $4,200 with the terms of 2/15,n/30.Sold goods on account to Mack Ltd at $2,100, terms 1/20, n/30. The costof goods sold was $1,300.Returned the defective goods costing $300 purchased on 1 December toJerry Wholesale.Paid the outstanding amount owed to Jerry Wholesale in full.Mack Ltd returned the unsatisfactory goods from the 2 December sales.The selling price was $400 and the cost of the goods was $180.Paid $200 for transportation fee, of which half is for 2 December sale andthe remaining for 1 December purchase.141516Received collections in full, from the customers billed on 2 December.Purchased goods from Jerry Wholesale for $8,400 with the terms of 2/15,n/30, FOB Destination Point, with goods shipped on the same day andreceived on 3 January 2020.Found inventory shortfall of $200 in the month-end physical count.213031Requireda) Prepare the journal entries to record the above transactions.b)Will your journal entries on 30 December be different if the purchase made on 31 Decembehad FOB Shipping point terms? Explain. If yes, show the entries.2.

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Asked Dec 19, 2019
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I dont know.how to do part a and b. Thank you for your help

Hardware Store completed the following transactions in December 2019. It uses
perpetual inventory system. It records both purchase and sales at gross amount.
1 Dec
Purchased goods from Jerry Wholesale for $4,200 with the terms of 2/15,
n/30.
Sold goods on account to Mack Ltd at $2,100, terms 1/20, n/30. The cost
of goods sold was $1,300.
Returned the defective goods costing $300 purchased on 1 December to
Jerry Wholesale.
Paid the outstanding amount owed to Jerry Wholesale in full.
Mack Ltd returned the unsatisfactory goods from the 2 December sales.
The selling price was $400 and the cost of the goods was $180.
Paid $200 for transportation fee, of which half is for 2 December sale and
the remaining for 1 December purchase.
14
15
16
Received collections in full, from the customers billed on 2 December.
Purchased goods from Jerry Wholesale for $8,400 with the terms of 2/15,
n/30, FOB Destination Point, with goods shipped on the same day and
received on 3 January 2020.
Found inventory shortfall of $200 in the month-end physical count.
21
30
31
Required
a) Prepare the journal entries to record the above transactions.
b)
Will your journal entries on 30 December be different if the purchase made on 31 Decembe
had FOB Shipping point terms? Explain. If yes, show the entries.
2.
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Hardware Store completed the following transactions in December 2019. It uses perpetual inventory system. It records both purchase and sales at gross amount. 1 Dec Purchased goods from Jerry Wholesale for $4,200 with the terms of 2/15, n/30. Sold goods on account to Mack Ltd at $2,100, terms 1/20, n/30. The cost of goods sold was $1,300. Returned the defective goods costing $300 purchased on 1 December to Jerry Wholesale. Paid the outstanding amount owed to Jerry Wholesale in full. Mack Ltd returned the unsatisfactory goods from the 2 December sales. The selling price was $400 and the cost of the goods was $180. Paid $200 for transportation fee, of which half is for 2 December sale and the remaining for 1 December purchase. 14 15 16 Received collections in full, from the customers billed on 2 December. Purchased goods from Jerry Wholesale for $8,400 with the terms of 2/15, n/30, FOB Destination Point, with goods shipped on the same day and received on 3 January 2020. Found inventory shortfall of $200 in the month-end physical count. 21 30 31 Required a) Prepare the journal entries to record the above transactions. b) Will your journal entries on 30 December be different if the purchase made on 31 Decembe had FOB Shipping point terms? Explain. If yes, show the entries. 2.

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a) Prepare the journal entries for the given t...

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Debit( S) credit(S) 4,200 Account titles and Explanation Date 1-Dec Inventory Account payable 2-Dec Account Receivable Sales 2-Dec COGS |Inventory 5-Dec Account payable Inventory 14-Dec Account payable bank ($4200 - $300) 15-Dec Sales 4,200 2,100 2,100 1,300 1,300 300 300 3,900 3,900 400 Account Receivable 15-Dec Inventory COGS 16-Dec Inventory cash 400 180 180 200 200 21-Dec cash 1,700 Account Receivable ($2100 - S400) 1,700 30-Dec Stock In Transit Account payable 31-Dec Loss of Inventory Inventory 8,400 8,400 200 200

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