Page 37 - Demo

CH(1): Journal entries %u2013Perpetual Inventory system34Exercise(1-6):Prepare journal entries to record the following merchandising transactions of Dean Company, which applies the perpetual inventory system. Dean Company offers all of its creditsales to customer%u2019scredit terms of 2/10, n/30. March1: Purchased merchandise from Awal Company for BD13,500 under credit term 1/10, n/25.March 2: Sold merchandise to customerSalemon credit for BD26,000.The cost of the merchandise sold was BD22,000.March5: Received an BD 1,500 credit memorandum fromAwal Company forthe return merchandise purchased on March1.March 6: Paid full due to Awal Company.March13: Received the amount due from customer Salem.March 15: Sold merchandise to customer Alaa on credit for BD37,400.The merchandise sold had costBD33,400. March 16: Issued a credit memorandum BD1,400 to customer Alaa for return merchandise sold on March15. The cost of the merchandise returned was BD950.March 23: Received the balance due from customer Alaa within the customer period.