Record the journal entries for the selected transactions encountered by Rainbow Inc. during February 2021. Rainbow Inc. uses a perpetual inventory system and estimates a return rate of 3% on its sales based 01-Feb Purchased merchandise on account from PaintHub Ltd at a cost of $54000, terms 1/15, n/30, FOB shipping point. 02-Feb Freight charges of $900 were paid by the appropriate party on the February1 purchase of merchandise. (Enter n/a in each blank for this transaction if no journal entry is required). 03-Feb Returned for credit $3000 of damaged goods purchased from PaintHub Ltd. on February 1. 08-Feb Purchased supplies for $1700 cash. 10-Feb Sold the remaining merchandise pubchased from PaintHub to Colour4ife Corp. for $98000 on account, terms n/30, FOB destination. 12-Feb Freight charges of $860 were paid by the appropriate party on the February 10 purchase of merchandise. Enter n/a in each field which is not required for recording this transaction.

Record the journal entries for the selected transactions encountered by Rainbow Inc. during February 2021. Rainbow Inc. uses a perpetual inventory system and estimates a return rate of 3% on its sales based 01-Feb Purchased merchandise on account from PaintHub Ltd at a cost of $54000, terms 1/15, n/30, FOB shipping point. 02-Feb Freight charges of $900 were paid by the appropriate party on the February1 purchase of merchandise. (Enter n/a in each blank for this transaction if no journal entry is required). 03-Feb Returned for credit $3000 of damaged goods purchased from PaintHub Ltd. on February 1. 08-Feb Purchased supplies for $1700 cash. 10-Feb Sold the remaining merchandise pubchased from PaintHub to Colour4ife Corp. for $98000 on account, terms n/30, FOB destination. 12-Feb Freight charges of $860 were paid by the appropriate party on the February 10 purchase of merchandise. Enter n/a in each field which is not required for recording this transaction.

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Description: Record the journal entries for the selected transactions encountered by Rainbow Inc. during February2021. Rainbow Inc. uses a perpetual inventory system and estimates a return rate of 3% on its sales based01-Feb Purchased merchandise on account from

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...

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