Question
Powell Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June,
Powell Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June 1 | Purchased books on account for $1,040 (including freight) from Catlin Publishers, terms 2/10, n/30. | |
3 | Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $720. | |
6 | Received $40 credit for books returned to Catlin Publishers. | |
9 | Paid Catlin Publishers in full. | |
15 | Received payment in full from Garfunkel Bookstore. | |
17 | Sold books on account to Bell Tower for $1,200. The cost of the merchandise sold was $730. | |
20 | Purchased books on account for $720 from Priceless Book Publishers, terms 1/15, n/30. | |
24 | Received payment in full from Bell Tower. | |
26 | Paid Priceless Book Publishers in full. | |
28 | Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $780. | |
30 | Granted General Bookstore $130 credit for books returned costing $80. |
Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places e.g. 15,222.)
June 9 Accounts Payable 1000 Cash 1040 Inventory 1040 June 15 Cash 1200 Accounts Receivable 1200 June 17Accounts Receivable 1200 Sales Revenue To record credit sale) Cost of Goods Sold 1200 730 Inventory 730 (To record cost of goods sold) June 20 Inventory 720 Accounts Payable 720 June 24 Cash Sales Discounts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started