Question

Sarasota’s 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 $1,140 from Catlin Publishers, terms 2/10, n/30. 3 Sold books on account to Garfunkle Bookstore for $1,080. The cost of the books sold was $650. 6 Received $40 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkle Bookstore. 17 Sold books on account to Bell Tower for $1,100. The cost of the merchandise sold was $780. 20 Purchased books on account for $600 from Priceless Book Publishers, terms 1/15, n/30. 24 Received payment in full from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $770. 30 Granted General Bookstore $140 credit for books returned costing $70.
Journalize the transactions for the month of June for Sarasota Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 125.53.)

Answer 1

Answer:

01-Jun

Dr Inventory $1,140

Cr Accounts Payable $1,140

03-Jun

Dr Accounts Receivable $1,080

Cr Sales $1,080

03-Jun

Dr Cost of goods sold $650

Cr Inventory $650

06-Jun

Dr Accounts Payable $40

Cr Inventory $40

09-Jun

Dr Accounts Payable $ 1,100

Cr Cash $ 1,078

Cr Inventory $ 22

15-Jun

Dr Cash $1,080

Cr Accounts Receivable $1,080

17-Jun

Dr Accounts Receivable $1,100

Cr Sales $1,100

17-Jun

Dr Cost of goods sold $780

Cr Inventory $780

20-Jun

Dr Inventory $600

Cr Accounts Payable $600

24-Jun

Dr Cash $ 1,078

Dr Sales Discounts $ 22

Cr Accounts Receivable $1,100

26-Jun

Dr Accounts Payable $600

Cr Cash $594

Cr Inventory $ 6

28-Jun

Dr Accounts Receivable $1,300

Cr Sales $1,300

28-Jun

Dr Cost of goods sold $770

Cr Inventory $770

30-Jun

Dr Sales Returns & Allowances $140

Cr Accounts Receivable $140

30-Jun

Dr Inventory $70

Cr Cost of goods sold $70

Explanation:

Preparation of the Journal entries for the month of June for Sarasota Warehouse using a perpetual inventory system.

Journal entries

01-Jun

Dr Inventory $1,140

Cr Accounts Payable $1,140

03-Jun

Dr Accounts Receivable $1,080

Cr Sales $1,080

03-Jun

Dr Cost of goods sold $650

Cr Inventory $650

06-Jun

Dr Accounts Payable $40

Cr Inventory $40

09-Jun

Dr Accounts Payable $ 1,100

($1,140-$40)

Cr Cash $ 1,078

($1,100-$22)

Cr Inventory $ 22

($1,100*2%)

15-Jun

Dr Cash $1,080

Cr Accounts Receivable $1,080

17-Jun

Dr Accounts Receivable $1,100

Cr Sales $1,100

17-Jun

Dr Cost of goods sold $780

Cr Inventory $780

20-Jun

Dr Inventory $600

Cr Accounts Payable $600

24-Jun

Dr Cash $ 1,078

($1,100-$22)

Dr Sales Discounts $ 22 ($1,100*2%)

Cr Accounts Receivable $1,100

26-Jun

Dr Accounts Payable $600

Cr Cash $594

($600-$6)

Cr Inventory $ 6

($600*1%)

28-Jun

Dr Accounts Receivable $1,300

Cr Sales $1,300

28-Jun

Dr Cost of goods sold $770

Cr Inventory $770

30-Jun

Dr Sales Returns & Allowances $140

Cr Accounts Receivable $140

30-Jun

Dr Inventory $70

Cr Cost of goods sold $70