Powell Warehouse distributes hardback books toretail stores and extends credit t

Question

Powell Warehouse distributes hardback books toretail stores and extends credit terms of 2/10.n 30 to all of its customers. During the month of June, the following merchandising transactions eccurred. June 1 Purchased books on account for $ 1.280 including freight) from Catlin Publishers,terms 2/10, n 30 3 Snld backcnn arrnurt to Garfunkel Rockstore for 1.100. The cost cf the merchandise 50 d was 5 00. 6 Received $ 80 credit for books returned to Catlin Publishers. 9 PaidCatlin Publishers in full. 15 Rrceived payment in full from Garfunkrl Bookstore. 17 Sold books on account to Bell Tower for $ 1100. The cost of the imerchandise sold was $950 20 Purchased books on accountfor $ 800 from Priceless Book Publishers, terms 11s, n/30. 24 Roocived paymcnt in full from Bell Tower 26 Paid Priceless Book Publishers in full 2B Sold books on account to General Bookstore for $1,55O. The cost of the merchandise sold was $800. 30 Grantod Gencral Bookstore $200 credit for books rcturnad costing$70. Journal izc the transactions for the month of Junc for Powell Warchousc, using a perpotualinwantory system.(If no entry is required, select 'No Entry" for the account tities and enter 0 for the amounts. Credit account tities are outomatically indented when amount is entered. Do not indent manually, Record journol entrics in the order presented in the problem. Round answers to O decimal places eg 15,222.) Date Account Titles and Explanation Dehit To record credit sale) (lo recnrd st o goods sold)

Explanation / Answer

Journal Etnries Date Accounting titles & Explanations Debit Credit 1-Jun Merchandise inventory 1,280 Accounts payable 1,280 3-Jun Accounts receivable 1,100 Sales 1,100 Cost of goods sold 800 Merchandise inventory 800 6-Jun Accounts payable 80 Merchandise inventory 80 9-Jun Accounts payable (1280-80)) 1,200 Merchandise inventory (1200*2%) 24 Cash 1176 15-Jun Cash 1,100 Accounts receivable 1,100 17-Jun Accounts receivable 1,100 Sales 1,100 Cost of goods sold 950 Merchandise inventory 950 20-Jun Merchandise inventory 800 Accounts payable 800 24-Jun Cash 1078 Sales discount (1100*2%) 22 Account receivable 1,100 26-Jun Accounts payable 800 Merchandise inventory (800*1%) 8 Cash 792 28-Jun Accounts receivable 1,550 Sales 1,550 Cost of goods sold 800 Merchandise inventory 800 30-Jun Sales return and allowance 200 Account receivable 200 Merchandise inventory 70 Cost of goods sold 70

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