Campus Stop Inc is a student co op On January 1 #996

Campus Stop Inc. is a student co-op. On January 1, 2014, the beginning inventory was $
150,000, the trade receivables balance was $ 4,000, and the allowance for doubtful accounts
had a credit balance of $ 800. Campus Stop uses a perpetual inventory system and records
inventory purchases by using the gross method. The following transactions (summarized)
occurred during 2014:a. Sold merchandise for $ 275,000 cash; the cost of sales is $ 137,500.b.
Received merchandise returned by customers as unsatisfactory and paid a cash refund of $
1,600; the returned merchandise had cost $ 800.c. Purchased merchandise from vendors on
credit, terms 3/ 10, n/ 30, as follows:i. August Supply Company, invoice price, $ 5,000.ii. Other
vendors, invoice price, $ 120,000.d. Purchased equipment for use in store for cash, $ 2,200.e.
Purchased office supplies for future use in the store; paid cash, $ 700.f. Paid freight on
merchandise purchased, $ 400 cash.g. Paid trade payables in full during the period as follows:i.
Paid August Supply Company after the discount period, $ 5,000.ii. Paid other vendors within the
discount period, $ 116,400.Required:Prepare journal entries for each of the preceding
transactions.View Solution:
Campus Stop Inc is a student co op On January 1

ANSWER
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