a)record transactions assuming the cimpany use prepetual inventory approach and the earnings approach
b)set up general ledger accounts for merchandise inventory, sales, sales return and allowances, sales discounts, cogs. enter the beginning merchandise inventory balance and post the transactions
c) prepare partial multiple-step income statement, upto gross profit, for the month of june 2021.
At the beginning of June 2021, Blue Spruce Distributing Company's ledger showed Cash $19,000, Merchandise Inventory 1.100, and D. Blue Spruce, Capital $23,100. During the month of June, the company had the following selected transactions: June 1 Purchased $9,000 of merchandise inventory from Sun Supply Co., terms 1/15, 130, FOB destination 2 The correct company paid $210 cash for freight charges on the June 1 purchase. 5 Sold merchandise inventory to Moose Jaw Retailers for $13,000. The cost of the merchandise was $7,500 and the terms were 2/10, JO, FO destination. 6 issued a $950 credit for merchandise returned by Moose Jaw Retailers. The merchandise originally cost $518 and was returned to inventory 6 The correct company paid $280 freight on the June 5 sale. 7 Purchased $810 of supplies for cash. 10 Purchased $3,750 of merchandise inventory from Fey Wholesalers, terms 2/10, 1/30, FOB shipping point. 10 The correct company paid $120 freight costs on the purchase from Fey Wholesalers. 12 Received a $250 credit from Fey Wholesalers for returned merchandise. 14 Paid Sun Supply Co. the amount due. 15 Collected the balance owing from Moose Jaw Retailers. 19 Sold merchandise for $7,100 cash. The cost of this merchandise was $4,400. 20 Paid Fey Wholesalers the balance owing from the June 10 purchase. 25 Made a $540 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $335. The merchandise was damaged and could not be resold. 30 Sold merchandise to Bauer & Company for $4,200, terms n/30, FOB shipping point. Blue Spruce's cost for this merchandise was $2,000. At the beginning of June 2021, Blue Spruce Distributing Company's ledger showed Cash $19,000, Merchandise Inventory 1.100, and D. Blue Spruce, Capital $23,100. During the month of June, the company had the following selected transactions: June 1 Purchased $9,000 of merchandise inventory from Sun Supply Co., terms 1/15, 130, FOB destination 2 The correct company paid $210 cash for freight charges on the June 1 purchase. 5 Sold merchandise inventory to Moose Jaw Retailers for $13,000. The cost of the merchandise was $7,500 and the terms were 2/10, JO, FO destination. 6 issued a $950 credit for merchandise returned by Moose Jaw Retailers. The merchandise originally cost $518 and was returned to inventory 6 The correct company paid $280 freight on the June 5 sale. 7 Purchased $810 of supplies for cash. 10 Purchased $3,750 of merchandise inventory from Fey Wholesalers, terms 2/10, 1/30, FOB shipping point. 10 The correct company paid $120 freight costs on the purchase from Fey Wholesalers. 12 Received a $250 credit from Fey Wholesalers for returned merchandise. 14 Paid Sun Supply Co. the amount due. 15 Collected the balance owing from Moose Jaw Retailers. 19 Sold merchandise for $7,100 cash. The cost of this merchandise was $4,400. 20 Paid Fey Wholesalers the balance owing from the June 10 purchase. 25 Made a $540 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $335. The merchandise was damaged and could not be resold. 30 Sold merchandise to Bauer & Company for $4,200, terms n/30, FOB shipping point. Blue Spruce's cost for this merchandise was $2,000
