Question

On June 5, Staley Electronics purchases 210 units of inventory on account for $21 each. After closer examination, Staley determines 30 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $37 each.

Record the journal entries for each date.

Answer 1

Step-by-step explanation:

The journal entries are shown below:

On June 5

Inventory A/c Dr $4,410 (210 units × $21)

To Cash or Bank A/c $4,410

(Being inventory is purchased)

On June 9

Cash or Bank A/c $630 (30 units × $21)

To Purchase return A/c $630

(Being returned goods is recorded)

On June 16

Cash or Bank A/c $6,660 (210 units -30 units) × $37

Cost of goods sold A/c $3,780 (210 units -30 units) × $21

To Sales A/c $6,660 (210 units -30 units) × $37

To Inventory A/c $3,780 (210 units -30 units) × $21

(Being remaining inventory is recorded)