Question

Crane 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 $2,580 (including freight) from Catlin Publishers, terms 2/10,n/30. 3 Sold books on account to Garfunkel Bookstore for $1,100. The cost of the merchandise sold was $850. 6 Received $80 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 $1,150. The cost of the merchandise sold was $950. 20 Purchased books on account for $700 from Priceless Book Publishers, terms 3/15, n/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 $1.150. The cost of the merchandise sold was $760. 30 Granted General Bookstore $170 credit for books returned costing $30. Journalize the transactions for the month of June for Crane Warehouse, using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sale of books on account) (To record cost of books sold)

Answer 1

Date June 1 I credit Debit $2,500 $2,580 Account Titles and Explanation Inventory Accounts Payable Accounts Receivable Sales Revenue (To record credit sale) June 3 $1,100 $1,100 June 3 sold $ 850 Cost of goods Inventory To record cost of $850 goods sold) $80 June 9 Accounts Payable $80 Inventory Accounts Payable $2,500 Inventory Cash cash $1,100 Accounts Receivable Accounts Receivable $1,150 Sales Revenue (To record sale of books on account) $ 50 $2,450 June 15 $1,100 June 17 وگا,1 $ June 17 $ 950 Cost of goods sold Inventory (To second cost of merchandise Boldly $9500

June 20 Inventory $ 700 Junean $1,150 June 26 $ 700 Accounts Payable Cash $ 1,127 Sales discounts $ 23 Accounts Receivable Accounts Payable $700 Inventory Cash accounts Receivable $1,150 Sales Revenue (To record sale of books on account) $21 $679 June 28 د کاراک $760 $760 June 28 cost of Goods sold Inventory To record cost of goods sold) June 30 Sales Returns and Allowance Accounts Receivable (To record merchandise returned) $170 $170 credit of June 30 $30 $30 Inventory cost of gooels sold (To record cost of merchandise returned)

Calculation. June ga Accounts Payable a $2,580 - $80 (credit Received) - $2,500 Inventory = $2,500 x 2% discount - $50 Cash – $2,500 – $50 discount - $2,450 June 24: Sales discounts = $1,150 x 2% discount June 26. Cash = $1,150 – $23. = $1,127 Inventory = $700 x 3% discount z $ 21 cash = $700 - $21 2 $679