On September 1, the beginning of its fiscal year, Blossom Ltd. had an inventory of 124 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 930 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 30 calculators to Digital for $600 credit because they did not meet specifications. Sold 430 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $900 to Campus Book Store for the return of 30 calculators that were not ordered. The calciators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store.

Date Account Titles and Explanation Sept. 2 Inventory Debit Credit Accounts Payable Sept 10 Accounts Payable Inventory Sept 11 Accounts Receivable 12900 Sales 18600 600 On September 1, the beginning of its fiscal year, Blossom Ltd, had an inventory of 124 calculators at a cost of $20 cach. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 Purchased 930 calculators for $20 each from Digital Corp. on account, terms n/30. 10 Returned 30 calculators to Digital for $600 credit because they did not meet specifications. 11 Sold 430 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. 14 Granted credit of $900 to Campus Book Store for the return of 30 calculators that were not ordered. The calcikators were restored to inventory. 29 Paid Digital the amount owing. 30 Received payment in full from the Campus Book Store. Sept. 11 Cost of Goods Sold 8260 Estimated Imventory Returns 340 Inventory (To record cost of merchandise sold) Sept. 14 Cost of Goods Sold Accounts Receivable (To record return of goods) Sept 14 Inventory 600 Cost of Goods Sold (To record cost of merchandise returned) Sept. 29 Accounts Payable 18000 Cash Sept 30 Cash 12000 Accounts Recelvable