Suppose Heat Miser Air Conditioner Company engaged in the following transactions during June of the current year:

June

3 Purchased inventory on credit terms of 1/10 net eom (end of month $1,600)

9 Returned 40% of the inventory purchased on June 3. It was defective.

12 Sold goods for cash $920 (cost $550)

15 Purchased goods for $5000. Credit terms were 3/15 net 30

16 Paid a $260 freight bill on goods purchased

18 Sold inventory for $2000 on credit terms 2/10, n/30 (cost $1180)

22 Received returned goods from the customer of the June 18 sale, $800 (cost $480)

24 Borrowed money from the bank to take advantage of the discount offered on the June 15 purchased. Signed a note payable to the bank for the net amount $4850

24 Paid supplier for goods purchased on June 15

28 Received cash in full settlement of the account from the customer who purchased inventory on June 18

29 Paid the amount owed on account from the purchase of June 3

REQUIREMENTS:

1. Journalize the proceeding transactions. Explanations not required.

2. Set up T accounts and post the journal entries to show the ending balances in the inventory and cost of goods sold accounts only