Question

Sheridan 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 $2.845 (including freight) from Catlin Publishers, terms 2/10,n/30. 3 Sold books on account to Garfunkel Bookstore for $900. The cost of the merchandise sold was $800. 6 Received $45 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 $1,400. The cost of the merchandise sold was $850. 20 Purchased books on account for $700 from Priceless Book Publishers, terms 1/15, 1/30. 24 Received payment in full from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $1,700. The cost of the merchandise sold was $770, 30 Granted General Bookstore $210 credit for books returned costing $30. Journalize the transactions for the month of June for Sheridan Warehouse, using a perpetual inventory system. (if no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented wher problem.) Date Account Titles and Explanation Debit Credit (To record sale of books on account) (To record cost of books sold) (To record sale of books on account)

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit (S) Credit (S) Jun.1 2,845.00 Merchandise Inventory Accounts Payable (To record inventory purchased on account) 2,845.00 Jun.3 900.00 Accounts Receivable Sales Revenue (To record Sales on account) 900.00 800.00 Cost of Goods Sold Merchandise Inventory (To record Cost of Goods Sold) 800.00 Jun.6 45.00 Accounts Payable Merchandise Inventory (To record purchase returns) $ 45.00 Jun.9 $ 2,800.00 Accounts Payable ($2845-$45) Merchandise Inventory ($2800x2%) Cash (To record Payment of payables) 56.00 2,744.00

Jun.15 900.00 Cash Accounts Receivable (To record collection of receivables) 900.00 Jun.17 $ 1,400.00 Accounts Receivable Sales Revenue (To record Sales on account) $ 1,400.00 850.00 Cost of Goods Sold Merchandise Inventory (To record Cost of Goods Sold) 850.00 700.00 Jun.20 Merchandise Inventory Accounts Payable (To record Purchase on account) 700.00 Jun.24 $ 1,372.00 28.00 Cash Merchandise Inventory ($1400x2%) Accounts Receivable (To record collection of receivables) $ 1,400.00

Jun.26 700.00 Accounts Payable Merchandise Inventory ($700x1%) Cash (To record payment of payables) 7.00 693.00 Jun.28 1,700.00 Accounts Receivable Sales Revenue (To record sales on account) $ 1,700.00 770.00 Cost of Goods Sold Merchandise Inventory (To record Cost of Goods Sold) 770.00 Jun.30 210.00 Sales Returns and Allowances Accounts Receivable (To record Sales Returns) $ 210.00 30.00 Merchandise Inventory Cost of Goods Sold (To record cost of Goods returned) $ 30.00