Exercise 5-3

On September 1, Boylan Office Supply had an inventory of 34 calculators at a cost of $16 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

Sept. 6 Purchased with cash 94 calculators at $29 each from Guthrie Co. Sept. 9 Paid freight of $94 on calculators purchased from Guthrie Co. Sept. 10 Returned 3 calculators to Guthrie Co. for $90 cash (including freight) because they did not meet specifications. Sept. 12 Sold 36 calculators costing $30 (including freight) for $41 each to Lee Book Store, terms n/30. Sept. 14 Granted credit of $41 to Lee Book Store for the return of one calculator that was not ordered. Sept. 20 Sold 39 calculators costing $30 for $43 each to Orrs Card Shop, terms n/30.

Journalize the September transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit Sept. 6 Sept. 9 Sept. 10 Sept. 12 (To record credit sale) (To record cost of merchandise sold) Sept. 14 (To record merchandise returned) (To record cost of merchandise returned) Sept. 20 (To record credit sale) (To record cost of merchandise sold)