Hi, I really need the journal entry for this problem.Perpetual/Periodic Inventory System:Problem:January 1: Mr. Lopez invested 39,000 into a business.January 2: Purchased office equipment 12,000.January 2: Purchased merchandise on account. Term: 2/10, n/30 FOB shipping point, 14,400.January 3: Purchased merchandise on account 15,000 to Lowtown. Terms: 2/10, n/30. FOB shipping point.January 4: Paid freight charge on Jan. 3,  3,000.January 6: Paid salaries 1,000January 7: Paid LowtownJanuary 8: Sold merchandise to a customer on an account worth 15,300. The cost of the merchandise is 13,300. Terms: 2/10, n/30 FOB destination.January 9: Paid freight charge 300 on Jan. 8January 10: Cash sales 9,000. The cost of merchandise 7,000.January 11: Mr. Lopez gets cash from the business worth 2,500.January 11: Paid purchased merchandise on account on Jan. 2.January 12: Purchased merchandise on an account worth 18,000. Terms: 2/10, n/30.January 15: Sold merchandise for cash worth 12,000. The cost of the merchandise is 10,000.January 16: Paid purchased merchandise on Jan. 12 9,000. No discount for partial payment.January 17: Mr. Lopez borrowed money from the bank amounting to 12,000 having a promissory note.January 18: Received credit memo from the customer of sold merchandise on Jan. 15 due to defects of merchandise 2,000. The cost of the merchandise returned is 1,667.January 19: Purchased merchandise on account 9,000. Terms: 2/10, n/30January 22: Cash sales 7,000. the cost of merchandise is 6,000.January 23: Returned 3,000 worth of merchandise from Jan. 19 purchases due to defects of merchandise.January 24: Paid purchases on January 19January 26: Sold merchandise on account 2,000. The cost of the merchandise is 1,500.January 29: Cash sales 7,000. The cost of the merchandise is 6,000.January 30: Paid the following expenses utilities 1,000, salaries 3,500, gasoline 500, supplies 1,000, rent 1,000.Note: Amount of inventory as of Jan. 21, 25,000.

Question
Asked Mar 9, 2020
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Hi, I really need the journal entry for this problem.

Perpetual/Periodic Inventory System:

Problem:

January 1: Mr. Lopez invested 39,000 into a business.

January 2: Purchased office equipment 12,000.

January 2: Purchased merchandise on account. Term: 2/10, n/30 FOB shipping point, 14,400.

January 3: Purchased merchandise on account 15,000 to Lowtown. Terms: 2/10, n/30. FOB shipping point.

January 4: Paid freight charge on Jan. 3,  3,000.

January 6: Paid salaries 1,000

January 7: Paid Lowtown

January 8: Sold merchandise to a customer on an account worth 15,300. The cost of the merchandise is 13,300. Terms: 2/10, n/30 FOB destination.

January 9: Paid freight charge 300 on Jan. 8

January 10: Cash sales 9,000. The cost of merchandise 7,000.

January 11: Mr. Lopez gets cash from the business worth 2,500.

January 11: Paid purchased merchandise on account on Jan. 2.

January 12: Purchased merchandise on an account worth 18,000. Terms: 2/10, n/30.

January 15: Sold merchandise for cash worth 12,000. The cost of the merchandise is 10,000.

January 16: Paid purchased merchandise on Jan. 12 9,000. No discount for partial payment.

January 17: Mr. Lopez borrowed money from the bank amounting to 12,000 having a promissory note.

January 18: Received credit memo from the customer of sold merchandise on Jan. 15 due to defects of merchandise 2,000. The cost of the merchandise returned is 1,667.

January 19: Purchased merchandise on account 9,000. Terms: 2/10, n/30

January 22: Cash sales 7,000. the cost of merchandise is 6,000.

January 23: Returned 3,000 worth of merchandise from Jan. 19 purchases due to defects of merchandise.

January 24: Paid purchases on January 19

January 26: Sold merchandise on account 2,000. The cost of the merchandise is 1,500.

January 29: Cash sales 7,000. The cost of the merchandise is 6,000.

January 30: Paid the following expenses utilities 1,000, salaries 3,500, gasoline 500, supplies 1,000, rent 1,000.

Note: Amount of inventory as of Jan. 21, 25,000.

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Note:

As the question does not clearly mention if the Perpetual inventory system or periodic inventory system is to be used. The inventory system followed by the company is assumed to be a periodic inventory system.

Under the periodic inventory system, the entry to record the cost of goods sold is passed at the end of the year.

Under the FOB Shipping point, the buyer is responsible for the goods i.e. freight charges are incurred by the buyer and under FOB Destination the seller is responsible for the goods until the goods reach the destination i.e. Freight charges are incurred by the seller.

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