Answer:
June 1
Debit inventory $5,994
Credit accounts payable $5,994
Being entries to record inventory purchased
June 2
Debit accounts payable $222
Credit purchases returns $222
Being entries to record inventory items returned
June 3
Debit Cost of sales $4,995
Credit Inventory $4,995
Being entries to record the cost of goods sold
For the sale,
Debit Cash account $7,290
Credit revenue account $7,290
Being entries to record sales
Explanation:
In the perpetual system of inventory management/valuation,purchases and sales are immediately recorded in the books. When inventory is purchased, debit inventory and credit cash or accounts payable.
Should there be a reason to return some or all of the items purchased, the entries required are debit cash/accounts payable and credit purchases returns.
When inventory is sold, two sets of entries are required. Based on the the inventory side,
Debit Cost of sales and Credit Inventory.
For the sale, Debit cash account and credit revenue account.
June 1 amount
= 162 * $37
= $5,994
June 2 amount returned
= 6 * $37
= $222
June 3
revenue amount = 135 * $54
= $7,290
Cost of sales amount
= 135 * $37
= $4,995
