Question

Assume that on September 1, Otice Depot had an inventory that included a variety of Calculators. The company uses a perpetual inventory system. During September, these transactions occurred Sept. 6 Purdhased calculators from Crane Co. at a total cost of $1.720, terms n/30. 9 Paid freight of $60 on calculators purchased from Crane Co. 10 Returned calculators to Crane Co.for $68 credit because they did not meet specifications 12 Sold calculators costing 5590 for $790 to Fryer Book Store, terms 1/30. 14 Granted credit of $40 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $30, 20 Sold calculators costing $570 for $740 to Heasley Card Shop terms/30 Journalize the September transactions of no entry is required, select 'No Entry for the account titles and enter for the amounts Credit account titles are automatically Indented when amount is entered. Do not indent manually. Record journal entries in the order resented in the problem.)

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Sep 6	Inventory	1720
	Account payable		1720
Sep 9	Inventory	60
	Cash		60
Sep 10	Account payable	68
	Inventory		68
Sep 12	Account receivable	790
	Sales revenue		790
	Cost of goods sold	590
	Inventory		590
Sep 14	Sales return and allowance	40
	Account receivable		40
	Inventory	30
	Cost of goods sold		30
Sep 20	Account receivable	740
	Sales revenue		740
	Cost of goods sold	570
	Inventory		570