Practice Problem Set 1 Powell Warehouse distributes hardback books to retail sto

Question

Practice Problem Set 1 Powell Warehouse distributes hardback books to retail stores and extends credit to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,040 from Catlin Publishers. 3 Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $720. 6 Received $40 credit for books returned to Catlin Publishers. 9 15 17 20 24 26 28 30 Paid Catlin Publishers in full Received payment in full from Garfunkel Bookstore Sold books on account to Bell Tower for $1,200. The cost of the merchandise sold was $730. Purchased books on account for $720 from Priceless Book Publishers. Received payment in full from Bell Tower Paid Priceless Book Publishers in full. Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $780. Granted General Bookstore $130 credit for books returned costing $80. Prepare a tabular summary to record the transactions for the month of June for Powell Warehouse using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)

Explanation / Answer

Date cash + Accts. Rec + Inventory = Accts Pay. + Com. Stock + Revenue - Expense 1-Jun 1040 1040 3-Jun 1200 1200 Sales revenue -720 720 Cost of goods sold 6-Jun -40 -40 9-Jun -1000 -1000 15-Jun 1200 -1200 17-Jun 1,200 1200 Sales revenue -730 730 Cost of goods sold 20-Jun 720 720 24-Jun 1200 -1200 26-Jun -720 -720 28-Jun 1300 1300 Sales revenue -780 780 Cost of goods sold 30-Jun -130 -130 Sales return 80 -80 Cost of goods return

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