Question

iculators at a cost eptember, the fol E5-3 On September 1. Bovlan Office Supply had an inventory of 30 calculators of $18 each. The company uses a perpetual inventory system. During September lowing transactions occurred. Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co. 9 Paid freight of $80 on calculators purchased from Guthrie Co. 10 Returned 3 calculators to Guthrie Co. for $63 credit (including freight) bem they did not meet specifications 12 Sold 26 calculators costing $21 (including freight) for $31 each to Lee Book Store, terms n/30. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered. 20 Sold 30 calculators costing $21 for $32 each to Orr's Card Shop, terms n/30. Instructions Tournalize the September transactions.

Answer 1

	Date	Account titles and explanation					Debit	Credit
	Sept 6.	Merchandise inventory				(80*20)	1600
		Cash						1600
		(Purchased calculators)
	Sept 9.	Merchandise inventory					80
		Cash						80
		(Freight charges paid)
	Sept 10.	Accounts payable					63
		Merchandise inventory						63
		(Returned calculators and credit availed)
	Sept 12.	Accounts receivable				(26*31)	806
		Sales revenue						806
		(Sold 26 calculators)
		Cost of goods sold				(26*21)	546
		Merchandise inventory						546
		(Cost of 26 calculators recorded)
	Sept 14.	Sales returns and allowances					31
		Accounts receivable						31
		(1 calculator returned)
		Merchandise inventory				(1*21)	21
		Cost of goods sold						21
		(Cost of 1 calculator returned now reversed)
	Sept 20.	Accounts receivable				(30*32)	960
		Sales revenue						960
		(Sold 30 calculators)
		Cost of goods sold				(21*32)	672
		Merchandise inventory						672
		(Cost of 30 calculators recorded)