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On November 1, Anastasia bookstore had an inventory of 300 books at a cost of $20 each. During the month of November, the following transactions
On November 1, Anastasia bookstore had an inventory of 300 books at a cost of $20 each. During the month of November, the following transactions occurred: Nov. 4. Purchased 100 books at a cost of $20 each from Alibaba company, terms 3/10 n/30. The shipping terms were FOB destination. Nov.6. Sold 70 books to Al-Najah university library for $40 each, terms 2/10 n/30. FOB destination. On the same date the responsible party paid fright cost of $200. Nov.7. Returned 20 books to Alibaba company because they didn't match the required order. Nov.8. Received back 10 books from Al-Najah university library because they were defective. Their Fair value is $5 each. Nov.14. Paid Alibaba company the full amount. Nov.18. Sold 100 books to Birzait university library for $42 each, terms 2/10 n/30. FOB Shipping point. On the same date, the responsible party paid fright cost of $50. Nov.20. Collected cash from An-Najah University library for the full amount. Nov.21. Received cash from Birzait university library for the full amount. Required: A. A. Prepare the journal entries to record the transactions in Anastasia bookstore books assuming the company uses a perpetual inventory system. B. B. Based on your answers in (A), what would the ending balance for inventory account on Nov.30. c. C. Prepare the journal entries to record the transactions in Anastasia bookstore books assuming the company uses a periodic inventory system
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