prepare journal entries to record each of the following purchases transactions of a 645408
1. The cost of merchandise inventory includes which of the following:
a. Costs incurred to buy the goods.
b. Costs incurred to ship the goods to the store(s).
c. Costs incurred to make the goods ready for sale.
d. Both a and b.
e. a, b, and c.
2. Prepare journal entries to record each of the following purchases transactions of a merchandising company.
Show supporting calculations and assume a perpetual inventory system.
Mar. 5 Purchased 500 units of product at a cost of $5 per unit. Terms of the sale are 2/10, n/60; the invoice is dated March 5.
Mar. 7 Returned 50 defective units from the March 5 purchase and received full credit.
Mar. 15 Paid the amount due from the March 5 purchase, less the return on March 7.