(APPENDICES 6A AND B) RECORDING PURCHASES AND SALES Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2009, there were 200 cartridges on hand at a cost of $60 each. During 2009, Printer Supply Company purchased 1,400 cartridges at $60 each, sold 800 cartridges at $95 each, and sold an additional 750 cartridges at $102 each after a midyear selling price increase. Printer returned 10 defective cartridges to the supplier. In addition, customers returned 15 cartridges that were purchased at $102 to printer for various reasons. Assume that Printer Supply Company uses a periodic inventory system.

Required:

. Prepare journal entries to record the purchases and sales of inventory. Assume that all purchases and sales are on credit but no discounts were offered.

. What is the cost of inventory, cost of goods sold, and gross profit for 2009?

. If you have previously worked Exercise 6-38, compare your answers. What are the differences? Be sure to explain why the differences occurred.

Exercise