Question

Swifty's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Swifty's inventory consisted of books purchased for $1,800. During June, the following merchandising transactions occurred. June 1 3 6 9 15 17 20 24 26 28 30 Purchased books on account for $1,600 from Kline Publishers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $40 for the freight on this date. Sold books on account to Reading Rainbow for $2,000. The cost of the books sold was $820. Received $200 credit for books returned to Kline Publishers. Paid Kline Publishers in full, less discount. Received payment in full from Reading Rainbow. Sold books on account to Blanco Books for $2,000. The cost of the books sold was $1,200. Purchased books on account for $1,400 from Dietz Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $50 for the freight on this date. Received payment in full from Blanco Books. Paid Dietz Publishers in full, less discount. Sold books on account to Reddy Bookstore for $1,500. The cost of the books sold was $1,000. Granted Reddy Bookstore $140 credit for books returned costing $84. Swifty's Book Warehouse's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Journalize the transactions for the month of June for Swifty's Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Journal Etnries
Date	Accounting titles & Explanations				Debit	Credit
1-Jun	inventory				1,600
	Accounts payable					1,600
3-Jun	Accounts receivable				2,000
	Sales					2,000
	Cost of goods sold				820
	Merchandise inventory					820
6-Jun	inventory				200
	Accounts payable					200
9-Jun	Accounts payable (1600-200)				1,400
	inventory					28
	Cash					1372
15-Jun	Cash				2,000
	Accounts receivable					2,000
17-Jun	Accounts receivable				2,000
	Sales					2,000
	Cost of goods sold				1200
	inventory					1200
20-Jun	inventory				1400
	Accounts payable					1400
24-Jun	Cash				1960
	Sales discount				40
	Account receivable					2,000
26-Jun	Accounts payable				1400
	inventory					28
	Cash					1372
28-Jun	Accounts receivable				1,500
	Sales					1,500
	Cost of goods sold				1000
	inventory					1000
30-Jun	Sales return and allowance				140
	Account receivable					140
	inventory				84
	Cost of goods sold					84