Problem 5-1A Kem's Book Warehouse distributes hardoover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of May, Kern's inventory consisted of books purchased for $2,100During June, the following merdandsing transactions oared. une 1 Purchased books on account for $1,80o from Binsfeld Publishers, FoB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $40 for the freight on this date. 3 Sold books on account to Reading Rainbow for $3,000. The cost of the books sold was $1,400. 6 Received $200 credit for books returned to Binsfeld Publishers. 9Paid Binsfeld Publishers in ful, less discount. 15 Received payment in full from Reading Rainbow 17 Sold books on account to Rapp Books for $1,700. The cost of the books sold was $1,020. also made a cash payment of $60 for the 20 Purchased books on account for $1,700 from McGinn Publishers, FOB destination, terms 1/15, n/30. The appropriate party freight on this date. 24 Received payment in full from Rapp Books. 26 Paid McGinn Publishers in full, less discount. 28 Sold books on account to Baeten Bookstore for $1,100. The cost of the books sold was $970. 30 Granted Baeten Bookstore $130 credit for books returned costing $78. Ken's Book Warehouse's chart of accounts indludes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold inventory system. (Credit account titles are automatically indented when transactions for the month of June for Kern's Book Warehouse using a perpetual i oumalize the amount is entered. Do not indent manually. Record journa I entries in the order presented in the problem Debit Credit Date Account Titles and Explanation Problem 5-1A Kem's Book Warehouse distributes hardoover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of May, Kern's inventory consisted of books purchased for $2,100During June, the following merdandsing transactions oared. une 1 Purchased books on account for $1,80o from Binsfeld Publishers, FoB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $40 for the freight on this date. 3 Sold books on account to Reading Rainbow for $3,000. The cost of the books sold was $1,400. 6 Received $200 credit for books returned to Binsfeld Publishers. 9Paid Binsfeld Publishers in ful, less discount. 15 Received payment in full from Reading Rainbow 17 Sold books on account to Rapp Books for $1,700. The cost of the books sold was $1,020. also made a cash payment of $60 for the 20 Purchased books on account for $1,700 from McGinn Publishers, FOB destination, terms 1/15, n/30. The appropriate party freight on this date. 24 Received payment in full from Rapp Books. 26 Paid McGinn Publishers in full, less discount. 28 Sold books on account to Baeten Bookstore for $1,100. The cost of the books sold was $970. 30 Granted Baeten Bookstore $130 credit for books returned costing $78. Ken's Book Warehouse's chart of accounts indludes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold inventory system. (Credit account titles are automatically indented when transactions for the month of June for Kern's Book Warehouse using a perpetual i oumalize the amount is entered. Do not indent manually. Record journa I entries in the order presented in the problem Debit Credit Date Account Titles and Explanation
