Question - Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 325 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:
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Date
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Activity
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a.
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Jan. 3
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Purchased on account 350 widgets for S11 each.
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b.
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Jan. $
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Sold on account 425 widgets for S30 each. Paid freight out with petty cash of $150.
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c.
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Jan. 10
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Purchased on account 600 widgets for S12 each.
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d.
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Jan. 11
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Shipping cost for the January 10 purchased merchandise was $400 was paid with a cheque by Alpha directly to the freight company.
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e.
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Jan. 12
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Returned 25 widgets received from Jan. 10 purchase as they were not the correct item ordered.
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f.
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Jan. 13
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Paid for the purchases made on Jan. 3.
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g.
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Jan. 21
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Sold on account 550 widgets for S30 each. Paid freight out with petty cash of $250.
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h.
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Jan. 22
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Authorize credit without return of goods for 50 widgets sold on Jan. 21 when customer advised that they were received in defective condition.
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Jan. 25
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Received payment for the sale made on Jan. 5.
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j.
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Jan. 26
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Paid for the purchases made on Jan. 10.
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k.
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Jan. 31
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Received payment for the sale made on Jan. 21.
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Use this information to prepare the General Journal entries (without explanation) for the January events. If no entry is required then enter the date and write "No Entry Required."