This is a variation of E 8–1 modified to focus on the periodic inventory system.]John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for themonth of May 2018:1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’saccount was credited by the supplier.3. Merchandise costing $2,800 was sold for $5,200 in cash.Required:Prepare the necessary journal entries to record these transactions.

Question

This is a variation of E 8–1 modified to focus on the periodic inventory system.]
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the
month of May 2018:
1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.
2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s
account was credited by the supplier.
3. Merchandise costing $2,800 was sold for $5,200 in cash.
Required:
Prepare the necessary journal entries to record these transactions.

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Journal and Ledger Balance

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