During July, its first month of operation, Boardwalk Beach Shop experienced the following business events. The company uses the periodic inventory system.1) July 2 Issued $29,000 of common stock for cash.2) July 3 Purchased $7,500 of merchandise on account with terms 2/10, n/30, FOB shipping point.3) July 3 Paid $300 cash for shipping charges on the July 3 purchase.4) July 4 Returned $1,500 of the merchandise purchased on July 3.5) July 5 Sold merchandise that cost $2,000 for $3,500 cash.6) July 10 Recorded the discount and paid the amount due from the purchase of merchandise on July 3.7) July 14 Purchased additional merchandise for $4,600 on account with terms 2/10, n/30, FOB destination.Required: Record the events in general journal format.
What will be an ideal response?
Event 6: Purchase discount = (Purchase of $7,500 ? Return of $1,500) × 2% = $120
Cash payment = Balance in accounts payable of ($7,500 ? $1,500 ? $120) = $5,880
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