Tranxit Ltd. had beginning inventory of 54 units that cost $105 each. During September, the company purchased 206 units on account at $105 each, returned 7 units for credit, and sold 150 units at $204 each.

A) Journalize the September transactions, assuming that Tranxit Ltd. 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.)

Account Titles and Explanation

Debit

Credit

____________

____________

(To record purchase of units)

________________________

_______________________

(To record return of defective units)

______________________

_____________________

(To record sales on account)

___________________

___________________

(To record cost of goods sold)

B) Journalize the September transactions, assuming that Tranxit Ltd. uses a periodic 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.)

Account Titles and Explanation

Debit

Credit

______________

_______________

(To record purchase of units)

__________________

___________________

(To record return of defective units)

_______________

_______________

(To record sales on account)

C) Assume that Tranxit Ltd. uses a periodic system and prepares financial statements at the end of each month. An inventory count determines that there are 103 units of inventory remaining at September 30. Prepare the necessary adjusting entry at September 30. (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.)

Date

Account Titles and Explanation

Debit

Credit

Sept 30 ________________________________________________

____________________________________________________

________________________________________________________

_____________________________________________________

____________________________________________________