Question

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.

Sept. 6 Purchased calculators from Sandhill Co. at a total cost of $1,680, terms n/30.
9 Paid freight of $50 on calculators purchased from Sandhill Co.
10 Returned calculators to Sandhill Co. for $51 credit because they did not meet specifications.
12 Sold calculators costing $460 for $640 to Fryer Book Store, terms n/30.
14 Granted credit of $40 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $29.
20 Sold calculators costing $500 for $720 to Heasley Card Shop, terms n/30.
Journalize the September transactions.

Answer 1

Sept 6

Dr Inventory 1,680

Cr Accounts Payable 1,680

Sept 9

Dr Inventory 50

Cr Cash 50

Sept 10

Dr Accounts Payable 51

Cr Inventory 51

Sept 12

Dr Accounts Receivable 640

Cr Sales Revenue 640

Sept 14

Dr Sales Returns and Allowances 40

Cr Accounts Receivable 40

Dr Inventory 29

Cr Cost of Goods Sold 29

Sept 20

Dr Accounts Receivable 720

Cr Sales Revenue 720

Dr Cost of Goods Sold 500

Cr Inventory 500

Step-by-step explanation:

Preparation of the journal entries for September transactions

Sept 6

Dr Inventory 1,680

Cr Accounts Payable 1,680

Sept 9

Dr Inventory 50

Cr Cash 50

Sept 10

Dr Accounts Payable 51

Cr Inventory 51

Sept 12

Dr Accounts Receivable 640

Cr Sales Revenue 640

Sept 14

Dr Sales Returns and Allowances 40

Cr Accounts Receivable 40

Dr Inventory 29

Cr Cost of Goods Sold 29

Sept 20

Dr Accounts Receivable 720

Cr Sales Revenue 720

Dr Cost of Goods Sold 500

Cr Inventory 500