Question

CALCULATOR Exercise 221 Petersen Book Store entered into the transactions listed below. July 6 8 9 19 22 28 31 Purchased $1,600 of merchandise on credit, terms n/30. Returned $100 of the items purchased on July 6. Paid freight charges of $90 on the items purchased July 6. Sold merchandise on credit for $4,400, terms 1/10, 1/30. The merchandise had an inventory cost of $2,700. of the merchandise sold on July 19, $300 of it was returned. The items had cost the store $150. Received payment in full from the customer of July 19. Paid for the merchandise purchased on July 6. Prepare Petersen's necessary entries, assuming use of the perpetual Inventory system. (Credit account titles are automatically inden entered. Do not indent manually.) Date Account Titles and Explanation Credit Debit earch

Answer 1

Date	Account tilte	Debit	Credit
Jul-06	Inventory	1,600
	Accounts Payable		1,600
	(To record purchase of merchandise)
Jul-08	Accounts Payable	100
	Inventory		100
	(To record return of merchandise purchased)
Jul-09	Inventory	90
	Cash		90
	(To record freight charges paid for purchase )
Jul-19	Accounts Receivable	4,400
	Sales		4,400
	(To record sales on account)
	Cost of goods sold	2,700
	Inventory		2,700
	(To record cost of goods sold)
Jul-22	Sales returns and allowances	300
	Accounts Receivable		300
	(To record sales return )
	Inventory	150
	Cost of goods sold		150
	(To record the sales inventory returned)
Jul-28	Cash ($4,100*99%)	4,059
	Sales discount ($4,100*1%)	41
	Accounts receivable		4,100
	(To record cash received from customer )
Jul-31	Accounts payable (1,600-100)	1,500
	Cash		1,500
	(To record payment to supplier)