Answer:
Powell Warehouse
General Journal
June 1:
Debit Inventory $1,280
Credit Accounts Payable (Catlin Publishers) $1,280
To record the purchase of books, terms 2/10, n/30.
June 3:
Debit Accounts Receivable (Garfunkel Bookstore) $1,100
Credit Sales Revenue $1,100
To record the sale of books on trade terms.
Debit Cost of Goods Sold $800
Credit Inventory $800
To record the cost of goods sold under the perpetual inventory system.
June 6:
Debit Accounts Payable (Catlin Publishers) $80
Credit Inventory $80
To record the credit received for books returned.
June 9:
Debit Accounts Payable (Catlin Publishers) $1,200
Credit Cash Discount $24
Credit Cash Account $1,176
To record the payment on account.
June 15:
Debit Cash Account $1,100
Credit Accounts Receivable $1,100
To record the receipt of payment in full settlement.
June 17:
Debit Accounts Receivable (Bell Tower) $1,100
Credit Sales Revenue $1,100
To record the sale of books on account.
Debit Cost of Goods Sold $950
Credit Inventory $950
To record the cost of goods sold under the perpetual inventory system.
June 20:
Debit Inventory $800
Credit Accounts Payable (Priceless Book Publishers) $800
To record the purchase of books on account, terms n/30.
June 24:
Debit Cash Account $1,078
Debit Cash Discount $22
Credit Accounts Receivable (Bell Tower) $1,100
To record the receipt of payment on account.
June 26:
Debit Accounts Payable (Priceless Book Publishers) $800
Credit Cash Account $800
To record payment on account.
June 28:
Debit Accounts Receivable (General Bookstore) $1,550
Credit Sales Revenue $1,550
To record the sale of books on account.
Debit Cost of Goods Sold $800
Credit Inventory $800
To record the cost of goods sold under the perpetual inventory system.
June 30:
Debit Sales (Returns) $200
Credit Accounts Receivable (General Bookstore) $200
To record the return of books on account.
Debit Inventory $70
Credit Cost of Goods Sold $70
To record the return of books.
Explanation:
Journal entries are the initial records made in the accounting system for business transactions. They show the accounts affected by each transaction. Two or more accounts are usually affected. One account receives value and is debited and the other gives value, and it is credited.
