39) Steve's Hardware Store uses the perpetual inventory system. The company incurred the following transactions:
a.On November 1, the owner, Steven Moore, purchased 10 snow blowers on account at $1,000 each. Credit terms were 2/10, net 30.
b.On November 2, Steven returned two snow blowers due to damage incurred in shipping.
c.On November 3, the supplier granted Steven an allowance of $100 on the snow blowers because one of the snow blowers was missing an attachment.
d.On November 10, Steven sold three of the snow blowers on account at $1,500 each. The credit terms were 2/10, net 30.
e.On November 12, Steven paid for the snow blowers.
f.On November 13, one customer returned a snow blower because it did not start.
g.On November 30, Steven paid wages of $2,000 for his assistant.
Required:
1.Journalize the above transactions for Steve's Hardware Store. Explanations are not required.
40) An auto dealer uses a perpetual inventory system. The dealer incurred the following transactions during the month of May:
1. On May 1, a dealer purchased 10 vehicles on account at $20,000 each, with credit terms of 2/10, net 30.
2. On May 2, the dealer returned one vehicle due to a product defect.
3. On May 3, the dealer sold 5 vehicles for $25,000 each on account to a local town. The credit terms were 3/10, net 30.
4. On May 9, the dealer paid for the vehicles purchased less the return on May 2.
5. On May 31, the dealer collected one-half of the amount due from the May 3 sale.
6. On May 31, the dealer paid the rent for the next month of $2,500.
Required:
Prepare the journal entries for the dealer during the month of May. Explanations are not required.