2) On September 1, Reid Supply had an inventory of 15 backpacks at a cost of $20

Question

2) On September 1, Reid Supply had an inventory of 15 backpacks at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions and events occurred. Sept. 4 Purchased 70 backpacks at $20 each from Hunter, terms 2/10, n/30. Sept. 6 Received credit of $100 for the return of 5 backpacks purchased on Sept. 4 that were defective. Sept. Sept. Sept. Sold 40 backpacks for $35 each to Oliver Books, terms 2/10, n/30. 13 Sold 15 backpacks for $35 each to Heller Office Supply, terms n/30. 14 Paid Hunter in full, less discount. 9 Instructions Journalize the September transactions for Reid Supply

Explanation / Answer

Journal entries for Reid Supply for the month of September Date Account Titles and Explanation Debit Credit Sept.4 Inventory $1,400 Accounts Payable (Hunter) $1,400 (recording of credit purchases of 70 backpacks) Sept.6 Accounts Payable (Hunter) $100 Inventory $100 (recording of purchase return 5 backpacks) Sept.9 Accounts Receivables (Oliver Books) $1,400 Sales $1,400 (recording of sale of 40 backpacks) Cost of goods sold $800 Inventory $800 (recording of reduction in inventory) Sept.13 Accounts Receivables (Heller Office supply) $525 Sales $525 (recording of sale of 15 backpacks) Cost of goods sold $300 Inventory $300 (recording of reduction in inventory) Sept.14 Accounts Payable (Hunter) $1,300 Discount Received $26 Cash $1,274 (recording of full and final payment to Hunter with discount of 2%)

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.