Question

On September 1, Nixa Office Supply had an inventory of 30 calculators at a cost of $14 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased 100 calculators at $22 each from York, terms net/30.
Sept. 9 Paid freight of $100 on calculators purchased from York Co.
Sept. 10 Returned 4 calculators to York Co. for $92 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 30 calculators costing $23 (including freight) for $35 each to Sura Book Store, terms n/30.
Sept. 14 Granted credit of $35 to Sura Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 34 calculators costing $23 for $36 each to Davis Card Shop, terms n/30.

Journalize the September transactions.

Answer 1

Answer:

Explanation:

The journal entries are shown below:

On Sep 6

Merchandise Inventory A/c $2,200 (100 calculators × $22 each)

                     To Accounts payable A/c $2,200

(Being calculator purchased on credit)

On Sep 9

Merchandise inventory A/c Dr $100

           To Cash A/c $100

(Being freight is paid for cash is recorded)

On Sep 10

Cash A/c Dr $92

      To Merchandise inventory A/c $92

(Being returned inventory is recorded)

On Sep 12

Accounts receivable A/c Dr $1,050 (30 calculators × $35 each)

          To sales A/c $1,050

(Being calculators sold at sale price)

Cost of goods sold A/c Dr $690 (30 calculators × $23 each)

       To Merchandise inventory A/c $690

(Being calculator sold at cost price)

On Sep 14

Sales return and allowance A/c Dr $35

       To Accounts receivable $35

(Being recording of sales return is recorded)

Merchandise inventory A/c Dr $23

      To Cost of goods sold A/c $23

(Being recording of sales return is recorded)

On Sep 20

Accounts receivable A/c Dr $1,224 (34 calculators × $36 each)

        To sales A/c $1,224

(Being recording of calculators sold at sale price)

Cost of goods sold A/c Dr $782 (34 calculators × $23 each)

       To Merchandise inventory A/c $782

(Being recording of calculator sold at cost price)