Question no 1

Titu Library distributes books to retail stores and credit terms of 2/10, n/30 to all of its customers. During June, the following merchandising transactions occurred.

June 1 Purchased books on account for $1,700 from Binsfeld Publishers, FOB destination, terms 3/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.

June 3 Sold books on account to Reading Rainbow for $2,550, FOB Destination. The cost of the books sold was $1,490. The appropriate party also made a cash payment of $50 for the freight on this date.

June 6 Received $100 credit as an allowance for low quality books from Binsfeld Publishers.

June 7 Granted $100 credit as an allowance for low quality books to Reading Rainbow.

June 9 Paid Binsfeld Publishers in full.

June15 Received payment in full from Reading Rainbow.

Chart of accounts includes 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,No 503 Freight out,+ and No. 505 Cost of Goods Sold.

Required

Journalize the transactions for Titu library, where they are using perpetual inventory system.