a-c

On September 1, Reid Supply had an inventory of 15 backpacks at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions and events occurred. Sept. 4 Purchased 70 backpacks at $20 each from Hunter, terms 2/10,n/30. Sept. 6 Received credit of $100 for the return of 5 backpacks purchased on Sept. 4 that were defective. Sept. 9 Sold 40 backpacks for $35 each to Oliver Books, terms 2/10,n/30. Sept.13 Sold 15 backpacks for $35 each to Heller Office Supply, terms n/30. Sept.14 Paid Hunter in full, less discount. Instructions (a) What is the ending inventory on Sept. 30? (b) What is the cost of goods sold on Sept. 30? (c) What is gross profit for the month of September? (a) [Not Required] Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system