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On September 1, Cullumber Marine had an inventory of 22 boats at a cost of $2,000 each. Cullumber does not expect any returns from sales
On September 1, Cullumber Marine had an inventory of 22 boats at a cost of $2,000 each. Cullumber does not expect any returns from sales of boats. The company uses a perpetual inventory system. During September, the following transactions and events occurred:
Sep. 3 Purchased 42 boats at $2,000 each from Hillside Fibreglass. The boats were shipped FOB destination terms n/30.
3 The appropriate party paid the freight costs.
6 Received credit of $12,000 for the return of 6 boats purchased on September 3 that were defective.
7 Paid for the September 3 purchase.
9 Sold 22 boats for $3,000 each to Billington Yacht Club on credit.
13 Cash sale of 17 boats for $3,000 each to Birch Island Ferry.
21 Purchased 29 boats at $2,000 each from Johnson Supply terms n/30.
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