Q1) Journalize given merchandising transactions for CSI Systems suppose it uses (a) periodic inventory system and (b) perpetual inventory system.
i) On November 1, CSI Systems buys merchandise for $1,400 on credit with terms of 2_5, n_30, FOB shipping point; invoice dated November 1.
ii) On November 5, CSI Systems pays cash for November 1 purchase.
iii) On November 7, CSI Systems discovers and returns $100 of defective merchandise bought on November 1 for a cash refund.
iv) On November 10, CSI Systems pays $80 cash for transportation costs with November 1 purchase.
v) On November 13, CSI Systems sells merchandise for $1,500 on credit. Cost of merchandise is $750.
vi) On November 16, customer returns merchandise from November 13 transaction. Returned items sell for $200 and cost $100.