Joumalize purchase and P5-1B Book Nook Warehouse distributes hardcover books to retail stores and extends sales transactions under a credit terms of 2/10,n/30 to all of its customers. At the end of May, Book Nook's invenperpetual inventory system. tory consisted of books purchased for 1,800. During June, the following merchandising (LO 2, 3) transactions occurred. June 1 Purchased books on account for 1,850 from Phantom Publishers, FOB destination, terms 2/10,n/30. The appropriate party also made a cash payment of 50 for the freight on this date. 3 Sold books on account to Ex Libris for 2,500. The cost of the books sold was 1,440. 6 Received 150 credit for books returned to Phantom Publishers. 9 Paid Phantom Publishers in full, less discount. 15 Received payment in full from Ex Libris. 17 Sold books on account to Bargain Books for 1,800. The cost of the books sold was 1,020. 20 Purchased books on account for 1,500 from Bookem Publishers, FOB destination, terms 2/15,n/30. The appropriate party also made a cash payment of 50 for the freight on this date. 24 Received payment in full from Bargain Books. 26 Paid Bookem Publishers in full, less discount. 28 Sold books on account to Corner Bookstore for 1,300. The cost of the books sold was 850. 30 Granted Corner Bookstore 120 credit for books returned costing 72. Book Nook Warehouse's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Instructions Journalize the transactions for the month of June for Book Nook Warehouse using a perpetual inventory system. Joumalize, post, and prepare P5-2B Copple Hardware Store completed the following merchandising transactions in a partial income statement. the month of May. At the beginning of May, the ledger of Copple showed Cash of $5,000 (LO2,3,5) and Share Capital-Ordinary of $5,000. May 1 Purchased merchandise on account from Nute's Wholesale Supply $4,200, terms 2/10,n/30. 2 Sold merchandise on account $2,300, terms 1/10,n/30. The cost of the merchandise sold was $1,300. 5 Received credit from Nute's Wholesale Supply for merchandise returned $500. 9 Received collections in full, less discounts, from customers billed on sales of $2,300 on May 2. 10 Paid Nute's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $400. 12 Purchased merchandise for cash $1,400. 15 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Sherrick Distributors $1,300, FOB shipping point, terms 2/10,n/30
