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Problem 5-2A Powell Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month
Problem 5-2A Powell Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. Purchased books on account for $1,940 (including freight) from Catlin Publishers, terms 4/10, n/30 sold books on account to Garfunkel Bookstore for $1,450. The cost of the merchandise sold was $800. Received $40 credit for books returned to Catlin Publishers. June 1 3 6 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore 17 Sold books on account to Bell Tower for $1,450. The cost of the merchandise sold was $950 20 Purchased books on account for $800 from Priceless Book Publishers, terms 2/15, 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 $1,600. The cost of the merchandise sold was $890. 30 Granted General Bookstore $100 credit for books returned costing $90 ournalize 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.) Date Account Titles and Explanation Debit Credit To record credit sale) To record cost of goods sold)
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