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Question 6 At the beginning of June 2017, Blue Spruce Distributing Company's ledger showed Cash $19,000, Merchandise Inventory $4,100, and D. Blue Spruce, Capital, $23,100. During the month of June, the company had the following selected transactions: June 1 Purchased $9,000 of merchandise inventory from Sun Supply Co., terms 1/15, n/30, FOB destination. 2 The correct company paid $210 cash for freight charges on the June 1 purchase. 5 Sold merchandise inventory to Moose Jaw Retailers for $13,000. The cost of the merchandise was $7,500 and the terms were 2/10, n/30, FOB destination. 6 Issued a $950 credit for merchandise returned by Moose Jaw Retailers. The merchandise originally cost $600 and was returned to inventory. 6 The correct company paid $280 freight on the June 5 sale. 7 Purchased $810 of supplies for cash. 10 Purchased $3,750 of merchandise inventory from Fey Wholesalers, terms 2/10, n/30, FOB shipping point. 10 The correct company paid $120 freight costs on the purchase from Fey Wholesalers. 12 Received a $250 credit from Fey Wholesalers for returned merchandise. 14 Paid Sun Supply Co. the amount due. 15 Collected the balance owing from Moose Jaw Retailers. 19 Sold merchandise for $7,100 cash. The cost of this merchandise was $4,400. 20 Paid Fey Wholesalers the balance owing from the June 10 purchase. 25 Made a $540 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $330. The merchandise was damaged and could not be resold. 30 Sold merchandise to Bauer & Company for $4,200, terms n/30, FOB shipping point. Blue Spruce's cost for this merchandise was $2,600. Record the transactions assuming Blue Spruce uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)Date Account Titles and Explanation Debit Credit (To record sales) (To record cost) (To record credit granted for returned goods) (To record the cost of the return)(To record goods purchased on account) (To record payment of freight on goods purchased) June 15 (To record sales)\fpost the transactions. Set up general ledger accounts for Merchandise Inventory, Sales, Sales Returns and Allowances, Sales Discounts, and Cost of Goods Sold. Enter the beginning merchandise inventory balance, and Merchandise Inventory Date Explanation Ref. Debit Credit Balance June 1 Balance V J1 J1 6 J1 10 J1 10 J1 12 J1 14 J1 19 J1 20 J1 30 J1 Sales Date Explanation Ref. Debit Credit Balance June 5 J1 19 J1 30 J1Sales Returns and Allowances Date Explanation Ref. Debit Credit Balance June 6 J1 25 J1 Sales Discounts Date Explanation Ref. Debit Credit Balance June 15 J1 Cost of Goods Sold Date Explanation Ref. Debit Credit Balance June 5 J1 6 J1 19 J1 30 J1 SHOW LIST OF ACCOUNTSPrepare a paral multiple-step income statement, up to gross prot, for the month of June 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BLUE SPRUCE DISTRIBUTING COMPANY Income Statement (Partial)
