Wildhorse's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 1/10,n/30 to all of its customers. At the end of May, Wildhorse's inventory consisted of books purchased for $1,600. During June, the following merchandising transactions occurred. June 1 3 6 9 15 17 Purchased books on account for $1,300 from Binsfeld Publishers, FOB destination, terms 2/10,n/30. The appropriate party also made a cash payment of $ 50 for the freight on this date. Sold books on account to Reading Rainbow for $ 2,000. The cost of the books sold was $ 1.400. Received $ 150 credit for books returned to Binsfeld Publishers. Paid Binsfeld Publishers in full, less discount Received payment in full from Reading Rainbow. Sold books on account to Rapp Books for $1,900. The cost of the books sold was $ 1,140. Purchased books on account for $1,900 from McGinn Publishers, FOB destination, terms 1/15,n/30. The appropriate party also made a cash payment of $40 for the freight on this date. Received payment in full from Rapp Books. Paid McGinn Publishers in full, less discount. Sold books on account to Baeten Bookstore for $1,400. The cost of the books sold was $ 970. Granted Baten Bookstore $ 130 credit for books returned costing $ 78. 20 24 26 28 30 Wildhorse's Book Warehouse's 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, and No. 505 Cost of Goods Sold. Journalize the transactions for the month of June for Wildhorse's Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Journalize the transactions for the month of June for Wildhorse's Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit June 1 Inventory 1300 Accounts Payable June 2 V Accounts Receivable 2000 Sales Revenue (To record credit sale) June 3 Cost of Goods Sold 1400 Inventory (To record cost of merchandise sold) Juneo V Accounts Payable 150 Inventory June Accounts Payable 1150 Inventory June 15 V 2000 Accounts Receivable June 17 V Accounts Receivable 1900 Selles Revenue (To record credit sale) June 17 Cost of Goods Sold 1140 Inventory (To record cost of merchandise sold) June 20 Inventory 1900 Accounts Payable June 24 V Sales Discounts Accounts Receivable June 26 V Accounts Payable 1900 Inventory June 28 Accounts Receivable 1400 Sales Revenue (To record credit sale)
