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Question
. Journalize the following transactions on the books of Sparky’s Pet Shop assuming a perpetual inventory system is used.
| Date | Transaction |
| Aug. 1 | Purchased $6,000 of merchandise on account, terms 2/10, n/30. |
| 3 | Returned $1,500 of merchandise purchased on August 1 due to defects. |
| 7 | Recorded cash sales for the first week of August, $9,750; cost of the merchandise was $4,000. |
| 10 | Made sale on account to a local breeder for $500, terms 1/10, net 30; cost of the merchandise was $200. |
| 11 | Paid for the merchandise purchased on August 1, less return. |
| 20 | Received payment from sale of August 10. The customer took the discount. |
Answer
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