Question

AccT 221 SOM pa F-19 Acer 221 Q-5 Me Marlonna. Stephenson EX. 19 On September 1, Rold Supply had an inventory of 15 backpacks at a cost of $25 each. The company uses a perpetual Inventory system. During September, the following transactions and events occurred. Sept. 4 Purchased 70 backpacks at $25 each from Hunter, terms 2/10, 1/30 - 1150 Sept. 6 Received credit of $150 for the return of 6 backpacks purchased on Sept. 4 that were defective ciation - hon Sept 4 - DO 0. Sept 6 Sept. 9 Sold 40 backpacks for $35 each to Oliver Books, terms 2/10, 1/30. - 1,400 Sept. 13 Sold 15 backpacks for $35 each to Heller Office Supply, terms 1V30. 5 5 Sept. 14 Paid Hunter in full, less discount. Instructions Joumalize the September transactions for Reid Supply. Ceneral Journal: kod Supply Inventory Accounts payable Sones 3 Returns Allowances Accounts Recievodi Ave cost of goods sold X Accounts Recieveable Sale Revenue Cost of Eroods Sold Inventory Accounts Recieveable Sall Revenue Cost of Goods sold Inventory Account Payable (150 x.02) Cosh. 1750-35: Inventory Sept 9 Sept 13 spt 14 Sept 14 D

Answer 1

	Journal Entry
			(in $)
Date	Particulars	Debit	Credit
Sept. 4	Inventory A/c _______Dr	1750
	To Account Payable		1750
	( Being purchase of 70 Backpack @ $25 each)
Sept. 6	goods are returned / credit Received:
	Account Payable A/c _______dr	150
	To Inventory A/c		150
	( being return credit of $150 received )
Sept.9	Good Sold to customer
	Account receivable A/c _____ Dr	4035
	To Sales		4035
	( Being Sale of 40 Backpack @$ 35)
	Cost of Goods Sold	1000
	To Inventory		1000
	( 40 Backpack @ $25)
Sept 13.	Account receivable A/c _____ Dr	525
	To Sales		525
	( Being Sale of 15 Backpack @$ 35)
	Cost of Goods Sold	375
	To Inventory		375
	( 15 Backpack @ $25)
Sep-14	Payment to Suppliers
	Account Payable _____Dr	1,568.00
	To Cash/Bank		1568
	Discount effects
	Account Payable_____Dr	32
	To Cost of Good Sold		27.50
	To Inventory		4.50

	Note -1 Discount Effect
On Sales	55.00	0.50	27.50	COGS
On inventory	9.00	0.50	4.50	Inventory
			32.00

assumption
It is assumed that discount is available on purchase from Hunter. For other' s payment / received after discount terms period over.