Give me some help in accounting to understand.?

Question

Journalize the following merchandising transactions for CSI Systems assuming it uses (a) a periodic

inventory system and (b) a perpetual inventory system.

1. On November 1, CSI Systems purchases merchandise for $1,400 on credit with terms of 2
5,

n
30, FOB shipping point; invoice dated November 1.

2. On November 5, CSI Systems pays cash for the November 1 purchase.

3. On November 7, CSI Systems discovers and returns $100 of defective merchandise purchased on

November 1 for a cash refund.

4. On November 10, CSI Systems pays $80 cash for transportation costs with the November 1 purchase.

5. On November 13, CSI Systems sells merchandise for $1,500 on credit. The cost of the merchandise

is $750.

6. On November 16, the customer returns merchandise from the November 13 transaction. The returned

items sell for $200 and cost $100.

Answer 1

(a) a periodic inventory system

1. On November 1, CSI Systems purchases merchandise for $1,400 on credit with terms of 2_5, n_30, FOB shipping point; invoice dated November 1

Dr  Purchases $1,400

Cr  Accounts payable $1,400

2. On November 5, CSI Systems pays cash for the November 1 purchase

Dr  Accounts payable $1,400

Cr  Purchase discounts $28

Cr  Cash $1,372

3. On November 7, CSI Systems discovers and returns $100 of defective merchandise purchased on November 1 for a cash refund

Dr  Cash $98

Dr  Purchase discounts $2

Cr  Purchases $100

4. On November 10, CSI Systems pays $80 cash for transportation costs with the November 1 purchase

Dr  Freight-in $80

Cr  Cash $80

5. On November 13, CSI Systems sells merchandise for $1,500 on credit. The cost of the merchandise is $750

Dr  Accounts receivable $1,500

Cr  Sales $1,500

6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $200 and cost $100

Dr  Sales returns & allowances $200

Cr  Accounts receivable $200

(b) a perpetual inventory system

1. On November 1, CSI Systems purchases merchandise for $1,400 on credit with terms of 2_5, n_30, FOB shipping point; invoice dated November 1

Dr  Merchandise inventory $1,400

Cr  Accounts payable $1,400

2. On November 5, CSI Systems pays cash for the November 1 purchase

Dr  Accounts payable $1,400

Cr  Merchandise inventory $28

Cr  Cash $1,372

3. On November 7, CSI Systems discovers and returns $100 of defective merchandise purchased on November 1 for a cash refund

Dr  Cash $98

Cr  Merchandise inventory $100

4. On November 10, CSI Systems pays $80 cash for transportation costs with the November 1 purchase

Dr  Merchandise inventory $80

Cr  Cash $80

5. On November 13, CSI Systems sells merchandise for $1,500 on credit. The cost of the merchandise is $750

Dr  Accounts receivable $1,500

Cr  Sales $1,500

Dr  COGS $750

Cr  Merchandise inventory $750

6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $200 and cost $100

Dr  Sales returns & allowances $200

Cr  Accounts receivable $200

Dr  Merchandise inventory $100

Cr  COGS $100