Franklin Craft Store completed the following merchandising transactions in the month of October. At the beginning of October, Franklin's ledger showed Cash of $8,000 and Franklin, Capital of $8,000.
Oct. 1 Purchased merchandise on account from Michael's Wholesale Supply for$4,800, terms 1/10, n/30.
2 Sold merchandise on account for $3,900, terms 2/10, n/30. The cost ofthe merchandise sold was $2,400.
5 Received credit from Michael's Wholesale Supply for merchandisereturned $600.
9 Received collections in full, less discounts, from customers billed onsales of $3,900 on October 2.
10 Paid Michael's Wholesale Supply in full, less discount.
11 Purchased supplies on account for $750.
12 Purchased merchandise for cash $2,100.
15 Received $200 refund for return of poor-quality merchandise fromsupplier on cash purchase.
17 Purchased merchandise on account from Handiwork Distributors for$2,500, terms 2/10, n/30.
19 Paid freight on October 17 purchase $310.
24 Sold merchandise for cash $6,900. The cost of the merchandise soldwas $4,510.
25 Purchased merchandise on account from Hobbytown Inc. for $1,000,terms 3/10, n/30.
27 Paid Handiwork Distributors in full, less discount.
29 Made refunds to cash customers for returned merchandise $190. Thereturned merchandise had cost $134.
31 Sold merchandise on account for $1,460, terms 1/10, n/30. The cost ofthe merchandise sold was $950.
Franklin Craft's chart of accounts includes Cash, Accounts Receivable, MerchandiseInventory, Supplies, Accounts Payable, Franklin, Capital, Sales, Sales Returns and Allowances,Sales Discounts, and Cost of Goods Sold.
Instructions
(a) Journalize the transactions in a general journal using a perpetual inventory system.