Journalize the following inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.

Dec.	1	Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75.
	3	Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420.
	8	Buyer pays within the discount period.

Chart of Accounts

CHART OF ACCOUNTS
Seller
General Ledger
ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customer Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing	REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 523 Depreciation Expense 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 536 Credit Card Expense 560 Miscellaneous Expense 710 Interest Expense

CHART OF ACCOUNTS
Buyer
General Ledger
ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing	REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 523 Depreciation Expense 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 536 Credit Card Expense 560 Miscellaneous Expense 710 Interest Expense

General Journal

Journalize the inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.

Seller

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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2
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8
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Buyer

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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2
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