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25 February, 07:02

On September 1, Nixa Office Supply had an inventory of 30 calculators at a cost of $14 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

Sept. 6 Purchased 100 calculators at $22 each from York, terms net/30.

Sept. 9 Paid freight of $100 on calculators purchased from York Co.

Sept. 10 Returned 4 calculators to York Co. for $92 cash (including freight) because they did not meet specifications.

Sept. 12 Sold 30 calculators costing $23 (including freight) for $35 each to Sura Book Store, terms n/30.

Sept. 14 Granted credit of $35 to Sura Book Store for the return of one calculator that was not ordered.

Sept. 20 Sold 34 calculators costing $23 for $36 each to Davis Card Shop, terms n/30.

Journalize the September transactions.

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Answers (1)
  1. 25 February, 10:18
    0
    The journal entries are shown below:

    On Sep 6

    Merchandise Inventory A/c $2,200 (100 calculators * $22 each)

    To Accounts payable A/c $2,200

    (Being calculator purchased on credit)

    On Sep 9

    Merchandise inventory A/c Dr $100

    To Cash A/c $100

    (Being freight is paid for cash is recorded)

    On Sep 10

    Cash A/c Dr $92

    To Merchandise inventory A/c $92

    (Being returned inventory is recorded)

    On Sep 12

    Accounts receivable A/c Dr $1,050 (30 calculators * $35 each)

    To sales A/c $1,050

    (Being calculators sold at sale price)

    Cost of goods sold A/c Dr $690 (30 calculators * $23 each)

    To Merchandise inventory A/c $690

    (Being calculator sold at cost price)

    On Sep 14

    Sales return and allowance A/c Dr $35

    To Accounts receivable $35

    (Being recording of sales return is recorded)

    Merchandise inventory A/c Dr $23

    To Cost of goods sold A/c $23

    (Being recording of sales return is recorded)

    On Sep 20

    Accounts receivable A/c Dr $1,224 (34 calculators * $36 each)

    To sales A/c $1,224

    (Being recording of calculators sold at sale price)

    Cost of goods sold A/c Dr $782 (34 calculators * $23 each)

    To Merchandise inventory A/c $782

    (Being recording of calculator sold at cost price)
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