Question

Sheridan 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 $1,690 (including freight) from Catlin Publishers, terms 2/10, 1/30. 

3 Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $950. 

6 Received $90 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 $1,700. The cost of the merchandise sold was $800. 

20 Purchased books on account for $600 from Priceless Book Publishers, terms 1/15, V30. 

24 Received payment in full from Bell Tower. 

26 Paid Priceless Book Publishers in full 

28 Sold books on account to General Bookstore for $2.550. The cost of the merchandise sold was $830. 

30 Granted General Bookstore $110 credit for books returned costing $60. 

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

Answer 1

Answer -

Date	Account Titles and Explanation	Debit ($)	Credit ($)
June 1	Inventory Accounts Payable (To record purchase of inventory)	1690 -	- 1690
June 3	Accounts Receivable Sales Revenue (To record credit sale)	1400 -	- 1400
June 3	Cost of good sold Inventory (To record cost of good sold)	950 -	- 950
June 6	Accounts Payable Inventory (To record credit received)	90 -	- 90
June 9	Accounts Payable [$1690 - $90] Inventory [$1600 * 2%] Cash [Difference] (To record payment made)	1600 - -	- 32 1568
June 15	Cash Accounts receivable (To record payment received)	1400 -	- 1400
June 17	Accounts Receivable Sales Revenue (To record credit sale)	1700 -	- 1700
June 17	Cost of good sold Inventory (To record cost of good sold)	800 -	- 800
June 20	Inventory Accounts Payable (To record purchase of inventory)	800 -	- 800
June 24	Cash [Difference] sales disc [$1700 * 2%] Accounts receivable (To record payment received)	1666 34 -	- - 1700
June 26	Accounts Payable Inventory [$800 * 1%] Cash [Difference] (To record payment made)	800 - -	- 8 792
June 28	Accounts Receivable Sales Revenue (To record credit sale)	2550 -	- 2550
June 28	Cost of good sold Inventory (To record cost of good sold)	830 -	- 830
June 30	Sales returns and allowances Accounts Receivable (To record credit granted)	110 -	- 110
June 30	Inventory Cost of goods sold (To record return)	60 -	- 60