The following transactions occurred at Slinky Inc., a retail toy store, which uses a perpetual inventory system:
July 1
July 3
merchandise cost $25 each and the credit terms were 4/10,n/30. The shipping
costs, paid separately in cash to the shipping company by Slinky, were $500
under the terms FOB Shipping. Slinky received the inventory on July 3 rd.
July 4
July 6
July 7
July 8
July 17
July 30
July 31
​

Slinky established a petty cash fund for $500.
Slinky purchased 100 units of inventory from a supplier on credit. The
Slinky returned 10 units of inventory from the July 3
rd
transaction to the
supplier. No shipping costs were incurred with the return.
​

Slinky sold 30 of the units purchased on July 3
rd
for $45 each to customers for
cash.
​

Slinky accepted a return of 1 unit of inventory from a July 6
th
customer for a
cash refund.
​

Slinky paid the supplier for the inventory purchased on July 3
rd
less the returns
made on July 4
th
.
​

Slinky used $150 out of petty cash to pay for a business lunch (meeting
expense), along with an additional $25 for parking (parking expense).
​

Slinky purchased 100 more units of inventory from a different supplier on
credit. The merchandise cost $30 each and no credit terms were granted. The
shipping costs were $600 under the terms FOB destination and Slinky received
the inventory on August 5
th
.
​

Slinky replenished petty cash.
​
Using the space provided below and on the next page, record the appropriate journal entries for these transactions with the appropriate date (no journal entry description is required). Include only journal entries that relate to July business. If no journal entry is needed, write the transaction date and "NO ENTRY".