Question

Crane Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, 1/30 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 2/10,30. 

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. The cost of the merchandise sold was 5950. 

20 Purchased books on account for $800 from Priceless Book Publishers, terms 1/15/30 

24 Received payment in full from Bell Tower. 

26 Paid Priceless Book Publishers in full 

28 Sold books on account to General Bookstore for $1,550. The cost of the merchandise sold was $800 

30 Granted General Bookstore $200 credit for books returned costing $70. 

Journalize the transactions for the month of June for Crane Warehouse using a perpetual inventory system 

Answer 1

Crane Warehouse
Journal entries
Date	Account	Debit	Credit	Calculation
1-Jun	Inventory	$        1,280
	Accounts Payable		$        1,280
3-Jun	Accounts Receivable	$        1,400
	Sales		$        1,400
3-Jun	Cost of goods sold	$           800
	Inventory		$           800
6-Jun	Accounts Payable	$              80
	Inventory		$              80
9-Jun	Accounts Payable	$        1,200		=1,280-80
	Cash		$        1,176
	Inventory		$              24	=1,200*2%
15-Jun	Cash	$        1,400
	Accounts Receivable		$        1,400
17-Jun	Accounts Receivable	$        1,100
	Sales		$        1,100
17-Jun	Cost of goods sold	$           950
	Inventory		$           950
20-Jun	Inventory	$           800
	Accounts Payable		$           800
24-Jun	Cash	$        1,078
	Sales Discounts	$              22		=1,100*2%
	Accounts Receivable		$        1,100
26-Jun	Accounts Payable	$           800
	Cash		$           800
28-Jun	Accounts Receivable	$        1,550
	Sales		$        1,550
28-Jun	Cost of goods sold	$           800
	Inventory		$           800
30-Jun	Sales Returns & Allowances	$           200
	Accounts Receivable		$           200
30-Jun	Inventory	$              70
	Cost of goods sold		$              70

Answer 2

Date	General Journal	Debit	Credit
Jun-01	Merchandise inventory	$   1,280
	Accounts payable		$   1,280
Jun-03	Accounts receivable	$   1,400
	Sales		$   1,400
	(To record sale of books on account)
Jun-03	Cost of goods sold	$      800
	Merchandise inventory		$      800
	(To record cost of goods sold)
Jun-06	Accounts payable	$        80
	Merchandise inventory		$        80
Jun-09	Accounts payable ($1,280-$80)	$   1,200
	Cash ($1,200*98%)		$   1,176
	Merchandise inventory		$        24
Jun-15	Cash	$   1,400
	Accounts receivable		$   1,400
Jun-17	Accounts receivable	$   1,100
	Sales		$   1,100
	(To record sale of books on account)
Jun-17	Cost of goods sold	$      950
	Merchandise inventory		$      950
	(To record cost of goods sold)
Jun-20	Merchandise inventory	$      800
	Accounts payable		$      800
Jun-24	Cash ($1,100*98%)	$   1,078
	Sales discount	$        22
	Accounts receivable		$   1,100
Jun-26	Accounts payable	$      800
	Cash ($800*99%)		$      792
	Merchandise inventory		$           8
Jun-28	Accounts receivable	$   1,550
	Sales		$   1,550
	(To record sale of books on account)
Jun-28	Cost of goods sold	$      800
	Merchandise inventory		$      800
	(To record cost of goods sold)
Jun-30	Sales return	$      200
	Accounts receivable		$      200
Jun-30	Merchandise inventory	$        70
	Cost of goods sold		$        70

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