DS Unlimited has the following transactions during August. August 6 Purchases 64

Question

DS Unlimited has the following transactions during August. August 6 Purchases 64 handheld game devices on account from GameGirl, Inc., for $170 each, terms 1/10, n/60. August 7 Pays $370 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl four game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 44 game devices purchased on August 6 for $190 each to customers on account. The total cost of the 44 game devices sold is $7,676.53. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)

Explanation / Answer

Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system

Date accounts & explanation debit credit Aug 6 Merchandise inventory (64*170) 10880 Account payable 10880 Aug 7 Merchandise inventory 370 Cash 370 Aug 10 Account payable (4*170) 680   Merchandise inventory 680 Aug 14 Account payable (60*170) 10200 Cash (10200*99%) 10098 Merchandise inventory (10200*1/100) 102 Aug 23 Account receivable (44*190) 8360 Sales revenue 8360 Cost of goods sold 7676.53 Merchandise inventory 7676.53

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