Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the gross method and a periodic inventory system.
Note: If no entry is required for a transaction/event, select “No journal entry required” in the first account field.

April 1 Sold merchandise for , with credit terms ; invoice dated April 1 . The cost of the merchandise is .
April 4 The customer in the April 1 sale returned of merchandise for full credit. The merchandise, which had cost , is returned to inventory.
April 8 Sold merchandise for , with credit terms of ; invoice dated April 8 . Cost of the merchandise is . April 11 Received payment for the amount due from the April 1 sale less the return on April 4.

April 1

1. Debit Accounts Receivable
2. Credit Sales Revenue
3. No entry for cost of goods sold in periodic system.

April 4

1. Debit Sales Returns and Allowances
2. Credit Accounts Receivable
3. Debit Inventory
4. Credit Cost of Goods Sold (Note: In a periodic system, this is typically not recorded until the end of the period, but for clarity, we include it here.)

April 8

1. Debit Accounts Receivable
2. Credit Sales Revenue
3. No entry for cost of goods sold in periodic system.

April 11

• Original Sale:
• Less Return:
• Amount Due:

1. Debit Cash
2. Credit Accounts Receivable

Summary of Journal Entries

1. April 1:
   • Debit Accounts Receivable
   • Credit Sales Revenue
2. April 4:
   • Debit Sales Returns and Allowances
   • Credit Accounts Receivable
   • Debit Inventory
   • Credit Cost of Goods Sold
3. April 8:
   • Debit Accounts Receivable
   • Credit Sales Revenue
4. April 11:
   • Debit Cash
   • Credit Accounts Receivable