Question

Crane Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June 1 Purchased books on account for $1,280 (including freight) from Catlin Publishers, terms 2/10, n/30.
3. Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $800.
6. Received $80 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full.
15. Received payment in full from Garfunkel Bookstore.
17. Sold books on account to Bell Tower for $1,100, terms of 2/10, n/30. The cost of the merchandise sold was $950.
20. Purchased books on account for $800 from Priceless Book Publishers, terms 1/15, n/30.
24. Received payment in full, less discount from Bell Tower.
26. Paid Priceless Book Publishers in full.
28. Sold books on account to General Bookstore for $1,550. The cost of the merchandise sold was $800.
30. Granted General Bookstore $200 credit for books returned costing $70.

Required:
Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system

Answer 1

Answer:

June 1

Dr Inventory $1,280

Cr Accounts Payable $1,280

June 3

Dr Accounts Receivable $1,400

Cr Sales Revenue $1,400

Dr Cost of good sold $800

Cr Inventory $800

June 6

Dr Accounts Payable $80

Cr Inventory $80

June 9

Dr Accounts Payable $1,200

Cr Inventory $24

Cr Cash $1,176

June 15

Dr Cash $1,400

Cr Accounts receivable $1,400

June 17

Dr Accounts receivable $1,100

Cr Sales Revenue $1,100

Dr Cost of Goods sold $950

Cr Inventory $950

June 20

Dr Inventory $800

Cr Accounts payable $800

June 24

Dr Cash $1,078

Dr sales discount $22

Cr Accounts receivable $1,100

June 26

Dr Accounts Payable $1,200

Cr Inventory $24

Cr Cash $1,176

June 28

Dr Accounts Receivable $1,550

Cr Sales $1,550

Dr Cost of goods sold $800

Cr Inventory $800

June 30

Dr Sales returns and allowances $200

Cr Accounts Receivable $200

Dr Inventory $70

Cr Cost of goods sold $70

Explanation:

June 1

Dr Inventory $1,280

Cr Accounts Payable $1,280

June 3

Dr Accounts Receivable $1,400

Cr Sales Revenue $1,400

Dr Cost of good sold $800

Cr Inventory $800

June 6

Dr Accounts Payable $80

Cr Inventory $80

June 9

Dr Accounts Payable $1,200

($1,280-$80)

Cr Inventory $24

(2%*$1,200)

Cr Cash $1,176

($1,200-$24)

June 15

Dr Cash $1,400

Cr Accounts receivable $1,400

June 17

Dr Accounts receivable $1,100

Cr Sales Revenue $1,100

Dr Cost of Goods sold $950

Cr Inventory $950

June 20

Dr Inventory $800

Cr Accounts payable $800

June 24

Dr Cash $1,078

($1,100-$22)

Dr sales discount $22

(2%*$1,100)

Cr Accounts receivable $1,100

June 26

Dr Accounts Payable $1,200

($1,280-$80)

Cr Inventory $24

(2%*$1,200)

Cr Cash $1,176

($1,200-$24)

June 28

Dr Accounts Receivable $1,550

Cr Sales $1,550

Dr Cost of goods sold $800

Cr Inventory $800

June 30

Dr Sales returns and allowances $200

Cr Accounts Receivable $200

Dr Inventory $70

Cr Cost of goods sold $70