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On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 122 calculators at a cost of $20 each.
On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 122 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 Purchased 915 calculators for $20 each from Digital Corp. on account, terms /30. Returned 29 calculators to Digital for $580 credit because they did not meet specifications Sold 420 calculators for $30 each to Campus Book Store terms n/30. Management estimates returns of 4% based on prior experience Granted credit of $870 to Campus Book Store for the return of 29 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store. 14 29 30 Date Account Titles and Explanation Debit Credit 18300 0 Sept. 2 Inventory 0 18300 Accounts Payable 580 0 Sept. 10 Accounts Payable Inventory 0 580 Sept. 11 Accounts Recevable 12600 0 12600 Sales 0 No Entry 0 (To record credit sale) Sept 11 Cost of Goods Sold 8400 0 Inventory 0 8400 0 No Entry Sept. 11 Cost of Goods Sold 8400 Inventory 0 8400 No Entry 0 0 (To record cost of merchandise sold) Sept 14 Sales Returns and Allowances 870 0 Accounts Receivable 0 870 (To record return of goods) Sept. 14 Inventory 580 0 Cost of Goods Sold 580 (To record cost of merchandise returned) Sept. 29 Accounts Payable 17720 0 Cash 0 17720 Sept. 30 Cash 11730 0
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