Question

Sheridan Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, 1/30 to all of its customers. During the month of June, the following merchandising transactions occurred. 

June 1 Purchased books on account for $1.690 (including freight) from Catlin Publishers, terms 2/10, 1/30. 

3 Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $950. 

6 Received $90 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 $1,700. The cost of the merchandise sold was $800. 

20 Purchased books on account for $800 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 $2.550. The cost of the merchandise sold was $830. 

30 Granted General Bookstore $110 credit for books returned costing $60. 

Journalize the transactions for the month of June for Sheridan Warehouse, using a perpetual inventory system. 

Answer 1

Date	Account Titles and Explanation	Debit ($)	Credit ($)
Jun-01	Inventory a/c ..Dr	1,690
	To Accounts Payable a/c		1,690
	(Being books purchased)
Jun-03	Accounts Receivable a/c ..Dr	1,400
	To Sales a/c		1,400
	(Being books sold on account)
Jun-03	Cost of goods sold a/c ..Dr	950
	To Inventory a/c		950
	(Being cost of goods sold recorded)
Jun-06	Accounts Payable a/c ..Dr	90
	To Inventory a/c		90
	(Being books returned)
Jun-09	Accounts Payable a/c ..Dr	1,600
	To Discount received a/c		32
	To Cash a/c		1,568
	(Being vendor paid in full after availing 2% discount since payment made within 30 days)
Jun-15	Cash a/c ..Dr	1,372
	Cash discount a/c ..Dr	28
	To Accounts Receivable a/c		1,400
	(Being cash received from customer, net of 2% cash discount)
Jun-17	Accounts Receivable a/c ..Dr	1,700
	To Sales a/c		1,700
	(Being books sold on account to Bell Tower)
Jun-17	Cost of goods sold a/c ..Dr	800
	To Inventory a/c		800
	(Being cost of goods sold recorded)
Jun-20	Inventory a/c ..Dr	800
	To Accounts Payable a/c		800
	(Being books purchased)
Jun-24	Cash a/c ..Dr	1,666
	Cash discount a/c ..Dr	34
	To Accounts Receivable a/c		1,700
	(Being cash received from customer, net of 2% cash discount)
Jun-26	Accounts Payable a/c ..Dr	800
	To Discount received a/c		8
	To Cash a/c		792
	(Being vendor paid in full after availing 1% discount since payment made within 30 days)
Jun-28	Accounts Receivable a/c ..Dr	2,550
	To Sales a/c		2,550
	(Being books sold on account to General Bookstore)
Jun-28	Cost of goods sold a/c ..Dr	830
	To Inventory a/c		830
	(Being cost of goods sold recorded)
Jun-30	Sales return and allowances a/c ..Dr	110
	To Accounts receivable a/c		110
	(Being credit of 110$ granted to General Bookstore on goods returned by customer)
Jun-30	Inventory a/c ..Dr	60
	To Cost of goods sold a/c		60
	(Being inventory recorded back since returned from customer)