Kingbird Company uses a perpetual inventory system. Its beginning inventory consists of 103 units that cost $70 each. During June, (1) the company purchased 308 units at $70 each on account, (2) returned 12 units for credit, and (3) sold 256 units at $103 each. Journalize the June transactions.

Question

Business

Easton Merritt

4 March, 12:02

Kingbird Company uses a perpetual inventory system. Its beginning inventory consists of 103 units that cost $70 each. During June, (1) the company purchased 308 units at $70 each on account, (2) returned 12 units for credit, and (3) sold 256 units at $103 each. Journalize the June transactions.

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Carleigh Buckley · Answer 1

Inventory Closing Value is $10080

Explanation:

Dr. Cr.

(1) the company purchased 308 units at $70 each on account

Inventory (308 x 70) 21560

Account Payable / Cash 21560

(2) Returned 12 units for credit

Account Payable / Cash 770

Inventory (11 x 70) 770

(3) Sold 256 units at $103 each.

Account receivable / Cash 26368

Sales (256 x 103) 26368

Cost of Goods sold 17920

Inventory Account: Dr. Cr. Balance

Opening Balance (103 x $70) $7210

(1) Purchase $21560 $28770

(2) Purchase Return $770 $28000

(3) Sale $17920 $10080

Inventory Closing Value is $10080