discount wines inc had a beginning inventory balance of 85 450 and engaged in the fo 538749

Record merchandising transaction perpetual inventory system.( LOI,2)

Discount Wines Inc. had a beginning inventory balance of $85,450 and engaged in the following transactions during the month of October.

October 2 Purchased $15,000 of merchandise inventory on account from Joe’s Winery with terms 2/10, nl30 and FOB destination. Freight costs for this purchase were $750.

October 5 Returned $ 100 of damaged merchandise to Joe’s October6 Sold $18,000 of merchandise to Tasty Catering Service on account, terms2 115,n /30 and FOB shipping point. Freight costs were $155.

The cost of the inventory sold was $10,500.

October l0 Paid the amount owed to Joe’s

October 10 Discount granted Tasty an allowance on the October 6 sale of $200 for some soured wine.

October 23 Received payment from Tasty

October 29 Paid sales salaries of $1, 500

October 31 Paid the rent on the ware house of $1,450

Enter each of the transactions for Discount Wines Inc. into the accounting equation, assuming they use a perpetual inventory system.