The Williams Company sells a product called Mix-Right for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of Mix-Rights and transactions during October 2014 were as follows:
Oct. 1 Balance: 85 units costing $5 each.
3 Purchased 100 units from Arnold Brothers costing $7.50 each.
4 Returned 20 of the units purchased on October 3
9 Sold 75 units to Kitchen Club, invoice #210.
15 Purchased 200 units from Arnold Brothers costing $7.75 each.
18 Sold 150 units to Thorhild Co-op, invoice #211.
19 Paid for the October 3 purchase; cheque #101
23 Paid for the October 15 purchase, cheque #102.
24 Sold 50 units to Boyle Grocery, invoice #212.
31 Purchased 75 units from Arnold Brothers costing $8.00 each.
Required
Journalize the October transactions in the Sales, Purchases, and Cash Disbursements Journals. Use page 1 for all your journals. Assume all sales and purchases are on credit; terms 2/10, n/30. Under the assumption that the company keeps its records on a weighted average basis, you will need to enter the beginning balances and post each transaction on an Inventory Subledger record like the one illustrated below in order to determine cost of goods sold. Posting to other subledgers is not required.