E5-3 - E5-3 Correct. On September 1, Howe Office Supply had...

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Unformatted text preview: E5-3 Correct. On September 1, Howe Office Supply had an inventory of 30 pocket calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept. 6 9 10 12 14 20 Purchased 80 calculators at $20 each from De Vito Co. for cash. Paid freight of $80 on calculators purchased from De Vito Co. Returned 2 calculators to De Vito Co. for $42 credit (including freight) because they did not meet specifications. Sold 26 calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30. Granted credit of $31 Mega Book Store for the return of one calculator that was not ordered. Sold 30 calculators costing $21 for $31 each to Barbara's Card Shop, terms n/30. Instructions Journalize the September transactions. Date Account / Description Sept. 6 Merchandise Inventory Cash Sept. 9 Merchandise Inventory Cash Sept. 10 Accounts Payable Merchandise Inventory Sept. 12 Accounts Receivable Sales (To record the sale) Cost of Goods Sold Merchandise Inventory (To record cost of merchandise sold) Sept. 14 Sales Returns and Allowances Accounts Receivable Debit $ 1600 Credit $ 1600 $ 80 $ 80 $ 42 $ 42 $ 806 $ 806 $ 546 $ 546 $ 31 $ 31 (To record the return) Merchandise Inventory Cost of Goods Sold (To record cost of merchandise returned) Sept. 20 Accounts Receivable Sales (To record the sale) Cost of Goods Sold Merchandise Inventory (To record cost of merchandise sold) $ 21 $ 21 $ 930 $ 930 $ 630 $ 630 ...
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This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.

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E5-3 - E5-3 Correct. On September 1, Howe Office Supply had...

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