Bridgeport Ltd. had beginning inventory of 52 units that cost $102 each. During

Question

Bridgeport Ltd. had beginning inventory of 52 units that cost $102 each. During September, the company purchased 201 units on account at $102 each, returned 6 units for credit, and sold 156 units at $202 each Journalize the September transactions, assuming that Bridgeport Ltd. uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Purchases 20502 20502 Accounts Payable To record purchase of units) Accounts Payable 612 Inventory 612 (To record return of defective units) Accounts Receivable 31512 Sales Revenue 31512 (To record sales on account) Cost of Goods Sold 15912 Inventory 15912 (To record cost of goods sold)

Explanation / Answer

Transaction

Account Titles and Explanation

Debit

Credit

1

Merchandise Inventory (201 units * $102)

$ 20,502.00

Accounts payable

$ 20,502.00

(To record the purchase of goods)

2

Accounts payable (6 units * $102)

$ 612.00

Merchandise Inventory

$ 612.00

(To recors purchase return)

3

Accounts receivable (156 units * $202)

$ 31,512.00

Sales

$ 31,512.00

(To record sale of goods)

Cost of goods sold (156 units * $102)

$ 15,912.00

Merchandise Inventory

$ 15,912.00

(To record cost of goods sold)

Transaction

Account Titles and Explanation

Debit

Credit

1

Merchandise Inventory (201 units * $102)

$ 20,502.00

Accounts payable

$ 20,502.00

(To record the purchase of goods)

2

Accounts payable (6 units * $102)

$ 612.00

Merchandise Inventory

$ 612.00

(To recors purchase return)

3

Accounts receivable (156 units * $202)

$ 31,512.00

Sales

$ 31,512.00

(To record sale of goods)

Cost of goods sold (156 units * $102)

$ 15,912.00

Merchandise Inventory

$ 15,912.00

(To record cost of goods sold)

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