Based on the given purchase and sale transactions, the journal entries are:
Date Account Title Debit Credit
Feb 3 Merchandise inventory 3,300
Account payable 3,300
Feb 7 Account payable 900
Merchandise inventory 900
Feb 9 Merchandise inventory 400
Cash 400
Feb 10 Account receivable 4,700
Sales revenue 4,700
Feb 10 Cost of goods 2,350
Freight out 370
Merchandise inventory 2,350
Cash 370
Feb 12 Account payable 2,400
Cash 2,328
Merchandise inventory 72
Feb 28 Cash 4,606
Sales discount 94
Account receivable 4,700
<h3 /><h3>What are the journal entries?</h3>
When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.
When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.
Because the goods were paid for in the discount period, a 3% discount would apply:
= 2,400 x (1 - 3%)
= $2,328
A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)
= $4,606
Find out more on discount terms at brainly.com/question/24086159.
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