Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August.
| Aug. 2 |
Sold 10 items of merchandise to Salon World on account at a selling price of $1,000 (total); terms 2/10, n/30. The goods cost NGS $650. |
| Aug. 3 |
Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $825 (total); terms 2/10, n/30. The goods cost NGS $400. |
| Aug. 6 |
Cosmetics R Us returned one of the items purchased on August 3. The item could still be sold by NGS in the future, and credit was given to the customer. |
| Aug. 10 |
Collected payment from Salon World, fully paying off the account balance. |
| Aug. 20 |
Sold two at-home spa kits to Meghan Witzel for $300 cash. The goods cost NGS $96. |
| Aug. 22 |
Cosmetics R Us paid its remaining account balance in full. |
| Requirement 1: |
| Prepare journal entries for each transaction |