Question

Blossom 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 $1,065 (including freight) from Catlin Publishers, terms 2/10, n/30.
3		Sold books on account to Garfunkel Bookstore for $1,500. The cost of the merchandise sold was $700.
6		Received $65 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 $1,900, terms of 2/10, n/30. The cost of the merchandise sold was $750.
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 $1,250. The cost of the merchandise sold was $810.
30		Granted General Bookstore $270 credit for books returned costing $65.

Journalize the transactions for the month of June for Blossom Warehouse, using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Answer
Journal entries
Date	Account	Debit	Credit	Calculation
01-Jun	Inventory	$       1,065
	Accounts Payable		$       1,065
03-Jun	Accounts Receivable	$       1,500
	Sales		$       1,500
03-Jun	Cost of goods sold	$          700
	Inventory		$          700
06-Jun	Accounts Payable	$            65
	Inventory		$            65
09-Jun	Accounts Payable	$       1,000		1065-65
	Cash		$          980
	Inventory		$            20	1000*2%
15-Jun	Cash	$       1,500
	Accounts Receivable		$       1,500
17-Jun	Accounts Receivable	$       1,900
	Sales		$       1,900
17-Jun	Cost of goods sold	$          750
	Inventory		$          750
20-Jun	Inventory	$          800
	Accounts Payable		$          800
24-Jun	Cash	$       1,862
	Sales Discounts	$            38		1,900*2%
	Accounts Receivable		$       1,900
26-Jun	Accounts Payable	$           800
	Cash		$          792
	Inventory		$              8	800*1%
28-Jun	Accounts Receivable	$       1,250
	Sales		$       1,250
28-Jun	Cost of goods sold	$          810
	Inventory		$          810
30-Jun	Sales Returns & Allowances	$          270
	Accounts Receivable		$          270
30-Jun	Inventory	$            65
	Cost of goods sold		$            65