Question

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 9 10 12 14 20 Purchased calculators from Blossom Co. at a total cost of $1,640, terms n/30. Paid freight of $50 on calculators purchased from Blossom Co. Returned calculators to Blossom Co. for $55 credit because they did not meet specifications. Sold calculators costing $470 for $630 to Fryer Book Store, terms n/30. Granted credit of $35 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $21. Sold calculators costing $530 for $680 to Heasley Card Shop, terms n/30. Journalize the September transactions. (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 calculators on account) (To record cost of calculators sold)

Answer 1

Journal Entries:

Date	Account title and explanation	Debit	Credit
Sept.6	Inventory	$1,640
	Accounts payable		$1,640
	[To record purchase of calculators on account]
Sept.9	Inventory	$50
	Cash		$50
	[To record cash paid for freight]
Sept.10	Accounts payable	$55
	Inventory		$500
	[To record purchase returns]
Sept.12	Accounts receivable	$630
	Sales revenue		$630
	[To record sale of calculators on account]
	Cost of goods sold	$470
	Inventory		$470
	[To record cost of calculators sold]
Sept.14	Sales returns and allowance	$35
	Accounts receivable		$35
	[To record return of calculator that was not ordered]
	Inventory	$21
	Cost of goods sold		$21
	[To record cost of calculators returned]
Sept.20	Accounts receivable	$680
	Sales revenue		$680
	[To record sale of calculators on account]
	Cost of goods sold	$530
	Inventory		$530
	[To record cost of calculators sold]