Question

W horse Warehouse distributes hardback books to retail stores and extends credit terms of 4/10./30 to all of its customers. During the month of the following merchandising transactions occurred June 1Purchased books on account for $1.940 Including freight) from Catlin Publishers, terms 4/10./30. 3 Sold books on account to Garfunkel Bookstore for $1.300. The cost of the merchandise sold was $800. 6 Received $40 credit for books returned to Catlin Publishers 9 Paid Catlin Publishers in 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for 51450. The cost of the merchandise sold was $950. 20 Purchased books on account for 5000 from Priceless Book Publishers, terms 2/15,30 24 Received payment in full from Bell Tower 26 Pald Priceless Book Publishers in full. 28 Sok books on to General Bookstore for $1.00. The cost of the merchandise old was $490 30 Granted General Bookstore $100 credit for boreturned conting so.

Answer 1

Wildhorse Warehouse
Journal entries
Date	Account	Debit	Credit	Calculation
1-Jun	Inventory	$        1,940
	Accounts Payable		$        1,940
3-Jun	Accounts Receivable	$        1,300
	Sales		$        1,300
3-Jun	Cost of goods sold	$           800
	Inventory		$           800
6-Jun	Accounts Payable	$              40
	Inventory		$              40
9-Jun	Accounts Payable	$        1,900		=1,940-40
	Cash		$        1,824
	Inventory		$              76	=1,900*4%
15-Jun	Cash	$        1,300
	Accounts Receivable		$        1,300
17-Jun	Accounts Receivable	$        1,450
	Sales		$        1,450
17-Jun	Cost of goods sold	$           950
	Inventory		$           950
20-Jun	Inventory	$           800
	Accounts Payable		$           800
24-Jun	Cash	$        1,392
	Sales Discounts	$              58		=1,450*4%
	Accounts Receivable		$        1,450
26-Jun	Accounts Payable	$           800
	Cash		$           784
	Inventory		$              16	=800*2%
28-Jun	Accounts Receivable	$        1,600
	Sales		$        1,600
28-Jun	Cost of goods sold	$           890
	Inventory		$           890
30-Jun	Sales Returns & Allowances	$           100
	Accounts Receivable		$           100
30-Jun	Inventory	$              90
	Cost of goods sold		$              90