Watson Heater Company sells portable heaters and related equipment. The business uses a perpetual inventory system, and the cost of its inventory at the beginning of November was \(\$ 2600\). Its cash balance was \(\$ 1500\) at the beginning of November, and it entered into the following transactions during November.

Required:

Prepare journal entries to record the preceding transactions.

Transcribed Image Text:

Date 1 Nov. 3 5 (O) 6 8 15 18 30 Transaction Made $550 cash sales to customers; the cost of the inventory sold was $300. Purchased $1870 of heaters for cash from Tyler Supply Company. Received $275 cash allowance from Tyler Supply Company for defective inventory purchased on 3 November. Paid $231 for parts and repaired defective heaters purchased from Tyler Supply Company on 3 November. Made $1650 sale of heaters on credit to Nate Nursing Home, with terms of 2/10, n/20. The cost of the inventory sold was $850. Purchased $1100 of heaters on credit from Miller Supplies, with terms of n/15. Received amount owed by Nate Nursing Home for heaters purchased on 8 November, less the cash discount. Paid for the inventory purchased from Miller Supplies on 15 November.