Question

Prepare the necessary general journal entries for the month of October for Crane Retail for each situation given below. Crane uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Oct. 5 Paid cash of $10,332 for operating expenses that were incurred and properly recorded in the previous period.
9 Purchased merchandise for $18,000 on account. Credit terms: 3/10, n/30.
12 Paid a freight bill of $90 for merchandise purchased on October 9.
17 Paid for merchandise purchased on October 9. The company takes all discounts to which it is entitled.
20 Sold merchandise for $6,560 to Rattles Distribution on account. The cost of the merchandise sold was $2,624. Credit terms: 2/10, n/30.
26 Issued a credit memo to Rattles Distribution for $246 for merchandise returned from the sale on October 20. The cost of the merchandise returned was $148.

Answer 1

The necessary journal entries for October month are attached below in the image :

What do you mean by journal entries?

All company transactions are documented in journal entries. Generally speaking, a transaction is any financial activity that has an effect on a business.

All the necessary journal entries are attached below:

Learn more about journal entries:

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