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Question - On April 30, 2020, White Jewellers purchased inventory of $53,000 on account from Northern Gems Ltd., a jewellery importer. Terms were 2/15, n/45. On receiving the goods, White checked the order and found $6,100 worth of items that were not ordered but included in the invoice. White returned this amount of merchandise to Northern on May 4. On May 14, White paid Northern.
Required -
1. Journalize all necessary transactions for White Jewellers, which uses the perpetual inventory system. Explanations are not required.
2. Journalize the transactions of Northern Gems Ltd., which uses the perpetual inventory system. Northern's gross margin is 30 percent, so cost of goods sold is 70 percent of sales. Explanations are not required.
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