Following are the merchandising transactions for Dollar Store. Nov. 1 Dollar Store purchases merchandise for $1,900 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1

Following are the merchandising transactions for Dollar Store.

Nov.		1		Dollar Store purchases merchandise for $1,900 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
		5		Dollar Store pays cash for the November 1 purchase.
		7		Dollar Store discovers and returns $150 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.
		10		Dollar Store pays $95 cash for transportation costs for the November 1 purchase.
		13		Dollar Store sells merchandise for $2,052 with terms n/30. The cost of the merchandise is $1,026.
		16		Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $270 and cost $135; the items were not damaged and were returned to inventory.

Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.

No	Date	General Journal	Debit	Credit
1	Nov 01	Merchandise inventoryselected answer correct	1,900selected answer correct	not attempted
		Accounts payableselected answer correct	not attempted	1,900selected answer correct
2	Nov 05	Accounts payableselected answer correct	1,900selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	38selected answer correct
		Cashselected answer correct	not attempted	1,862selected answer correct
3	Nov 07	Cash 150*(100%-2%)selected answer correct	147selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	147selected answer correct
4	Nov 10	Merchandise inventoryselected answer correct	95selected answer correct	not attempted
		Cashselected answer correct	not attempted	95selected answer correct
5	Nov 13	Accounts receivableselected answer correct	2,052selected answer correct	not attempted
		Salesselected answer correct	not attempted	2,052selected answer correct
6	Nov 13	Cost of goods soldselected answer correct	1,026selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	1,026selected answer correct
7	Nov 16	Sales returns and allowancesselected answer correct	270selected answer correct	not attempted
		Accounts receivableselected answer correct	not attempted	270selected answer correct
8	Nov 16	Merchandise inventoryselected answer correct	135selected answer correct	not attempted
		Cost of goods soldselected answer correct	not attempted	135selected answer correct

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11.

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system).

Merchandise inventory	$	47,300		Sales returns and allowances	$	4,600
Retained earnings		134,300		Cost of goods sold		110,700
Dividends		7,000		Depreciation expense		12,200
Sales		164,100		Salaries expense		42,000
Sales discounts		4,800		Miscellaneous expenses		5,000

A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $45,200.

Prepare the entry to record any inventory shrinkage.

No	Date	General Journal	Debit	Credit
1	July 31	Cost of goods soldselected answer correct	2,100selected answer correct	not attempted
		Merchandise inventory 47300-45200selected answer correct	not attempted	2,100selected answer correct

12.
Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage.

No	Date	General Journal	Debit	Credit
1	July 31	Salesselected answer correct	164,100selected answer correct	not attempted
		Income summaryselected answer correct	not attempted	164,100selected answer correct
2	July 31	Income summaryselected answer correct	181,400selected answer correct	not attempted
		Sales discountsselected answer correct	not attempted	4,800selected answer correct
		Sales returns and allowancesselected answer correct	not attempted	4,600selected answer correct
		Cost of goods sold (+2100) selected answer correct	not attempted	112,800selected answer correct
		Depreciation expenseselected answer correct	not attempted	12,200selected answer correct
		Salaries expenseselected answer correct	not attempted	42,000selected answer correct
		Miscellaneous expensesselected answer correct	not attempted	5,000selected answer correct

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13.

The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2017, unadjusted trial balance of Emiko Co.. Emiko Co. uses a perpetual inventory system.

		Debit			Credit
Merchandise inventory	$	34,500
Prepaid selling expenses		6,500
Dividends		42,000
Sales				$	565,000
Sales returns and allowances		19,300
Sales discounts		5,900
Cost of goods sold		230,000
Sales salaries expense		57,000
Utilities expense		19,500
Selling expenses		40,500
Administrative expenses		114,000

Additional Information
Accrued sales salaries amount to $2,100. Prepaid selling expenses of $3,900 have expired. A physical count of year-end merchandise inventory shows $31,400 of goods still available.

(a) Use the above account balances along with the additional information, prepare the adjusting entries.
(b) Use the above account balances along with the additional information, prepare the closing entries.

Use the above account balances along with the additional information, prepare the adjusting entries.

No	Date	General Journal	Debit	Credit
1	Dec 31	Sales salaries expenseselected answer correct	2,100selected answer correct	not attempted
		Salaries payableselected answer correct	not attempted	2,100selected answer correct
2	Dec 31	Selling expensesselected answer correct	3,900selected answer correct	not attempted
		Prepaid selling expensesselected answer correct	not attempted	3,900selected answer correct
3	Dec 31	Cost of goods soldselected answer correct	3,100selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	3,100selected answer correct