Answer: The journal entry for Nelson company are as follows uses a perpetual inventory system:
Info General Journal Debit Credit
a Store Supplies expense $1,750
To Store Supplies $1,750
b Insurance Expense $1,400
To Prepaid Insurance $1,400
c Depreciation expense $1,525
To Accumulated Depreciation - Store equipment $1,525
d Cost of goods sold $10,900
To Merchandize Inventory $10,900
