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Sarasota Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Sarasota's inventory consists of 240 books purchased at $19 each.
Sarasota Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Sarasota's inventory consists of 240 books purchased at $19 each. Sarasota uses a perpetual inventory system. Return rates in the book industry are high, with Sarasota experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 Purchased 170 books on account for $17 each from Reader's World Publishers, terms n/45. 3 Sold 200 books on account to The Book Nook for $25 each, with an assumed average cost of $18, terms n/45. 5 Received a $153 credit for 9 books returned to Reader's World Publishers. 8 9 11 12 Sold 76 books on account to Read-A-Lot Bookstore for $24 each, with an assumed average cost of $18, terms n/45. Issued a $288 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. Purchased 130 books on account for $16 each from Read More Publishers, terms n/45. Received payment in full from The Book Nook. 17 Received payment in full from Read-A-Lot Bookstore. 2 2 2 2 2 2 22 25 Sold 125 books on account to Reader's Bookstore for $25 each, with an assumed average cost of $18, terms n/45. Granted Reader's Bookstore a $350 credit for 14 returned books. These books were restored to inventory. Paid Reader's World Publishers in full. Record the June transactions. (List all debit entries before credit entries. 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 O for the amounts. Round your answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation (To record sales) (To record cost of goods sold) Debit Credit .... (To record sales) (To record cost of goods sold) (To record sales) (To record cost of goods sold) (To record sales returns) (To record cost of goods returned) (To record cost of goods sold) (To record sales returns) (To record cost of goods returned)
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