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Journalizing purchase and sale transactions-perpetual system The following transactions occurred between East Pharmaceuticals and E & M, the pharmacy chain, during August of the current year:
Aug
6
E & M purchased $11,000 of merchandise from East on credit terms of 3/10, n/30, FOB shipping point. Separately, E & M paid a $250 bill for freight in. These goods cost East $3,300.
10
E & M returned $2,750 of the merchandise purchased on August 6. East accounted for the sales return and placed the goods back in inventory (East's cost, $1,100).
15
E & M paid $5,500 of the invoice amount owed to East for the August 6 purchase less the discount.
27
E & M paid the remaining amount owed to East for the August 6 purchase.
Requirements
1. Journalize these transactions on the books of E & M.
2. Journalize these transactions on the books of East Pharmaceuticals.
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