On September 1, Nixa Office Supply had an inventory of 30 calculators at a cost

Question

On September 1, Nixa Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

Sept. 6 Purchased with cash 100 calculators at $21 each from York Co. Sept. 9 Paid freight of $100 on calculators purchased from York Co. Sept. 10 Returned 3 calculators to York in exchange for $66 cash (including reimbursement for freight fee) because they did not meet specifications. Sept. 12 Sold 28 calculators costing $22 (including freight) for $33 each to Sura Book Store, terms n/30. Sept. 14 Granted credit of $33 to Sura Book Store for the return of one calculator that was not ordered. Sept. 20 Sold 34 calculators costing $22 for $36 each to Davis Card Shop, terms n/30.

Explanation / Answer

Sep-06 Merchandise Inventory 2100            Cash 2100 Sep-09 Merchandise Inventory 100            Cash 100 Sep-10 Accounts Payable 66          Merchandise Inventory 66 Sep-12 Accounts Receivable 924           Sales 924 Cost of Goods Sold 616          Merchandise Inventory 616 Sep-14 Sales Returns and Allowances 33          Accounts Receivable 33 Merchandise Inventory 22         Cost of Goods Sold 22 Sep-20 Accounts Receivable 1224           Sales 1224 Cost of Goods Sold 748          Merchandise Inventory 748

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