Question

Oriole Warehouse distributes hartback books to retail stores and extends credit terms of 2/10, /30 of its customers. During the month of June, the following merchandising transactions occurred June 1 Purchased books on count for $1,165 (including freigh) from Ca r s, arms 2/10,30 1 Sab on Gate Bookstore for $1.200. The cost of the merchandise old was 5750 & Received $65 credit for books returned to Catlin Publishers Paid Catlin Publishers is full 15 Received payment in ful from Garfunkel Bookstore 12 Sold books on account to Be Tower for $2,000. The cost of the merchandise old was $900. 20 Purchased books on account for 900 from Priceless Book Publishers, terms 2/15, 30 24 Received payment in full from Bell Tower 26 Paid Priceless Book Publishers in 28 Sold books on account to General Bookstore for $1.300. The cost of the merchandise sold was 910 30 Granted General Bookstore 1270 C for returned costing 55 Jourite the transactions for the month of Dune for Oriote Warehouse, using perpetual inventory system. Ir ne entry is required select "No Entry for the accountries and enter for the amount

Answer 1

Answer:

Date	Account title and Explanation	Debit	Credit
June 1	Inventory	$1,165
	Accounts payable		$1,165
	[To record purchase of inventory on account]
June 3	Accounts receivable	$1,200
	Service revenue		$1,200
	[To record sale of books on account]
	Cost of goods sold	$750
	Inventory		$750
	[To record cost of goods sold]
June 6	Accounts payable	$65
	Inventory		$65
	[To record purchase returns]
June 9	Accounts payable [1,165-65]	$1,100
	Inventory [1,100 x 2%]		$22
	Cash		$1,078
	[To record cash paid for accounts payable]
June 15	Cash	$1,200
	Accounts receivable		$1,200
	[To record collections from customers]
June 17	Accounts receivable	$2,000
	Service revenue		$2,000
	[To record sale of books on account]
	Cost of goods sold	$900
	Inventory		$900
	[To record cost of goods sold]
June 20	Inventory	$900
	Accounts payable		$900
	[To record purchase of inventory on account]
June 24	Cash	$2,000
	Accounts receivable		$2,000
	[To record collections from customers]
June 26	Accounts payable	$900
	Inventory [900 x 2%]		$18
	Cash		$882
	[To record cash paid for accounts payable]
June 28	Accounts receivable	$1,300
	Service revenue		$1,300
	[To record sale of books on account]
	Cost of goods sold	$910
	Inventory		$910
	[To record cost of goods sold]
June 30	Sales returns and allowance	$270
	Accounts receivable		$270
	[To record sales returns]
	Inventory	$85
	Cost of goods sold		$85
	[To record cost of sales returns]