Refer to the KC Toys facts in Short Exercise 5-2.

Price: $1.99


S5-3 Journalizing purchase transactions—perpetual inventory [10 min]
Refer to the KC Toys facts in Short Exercise 5-2.

Requirements

1. Journalize the following transactions. Explanations are not required.

a. Purchase of the goods on July 8, 2012.

b. Return of the damaged goods on July 12, 2012.

c. Payment on July 15, 2012.

2. In the final analysis, how much did the inventory cost KC Toys?

data from E5-2
Suppose KC Toys buys $185,800 worth of MegoBlock toys on credit terms of 2/10,
n/30. Some of the goods are damaged in shipment, so KC Toys returns $18,530 of
the merchandise to MegoBlock.