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 Green Box Co. at a total cost of $1,620, terms n/30.
9 Paid freight of $50 on calculators purchased from Green Box Co.
10 Returned calculators to Green Box Co. for $38 credit because they did not meet specifications.
12 Sold calculators costing $520 for $690 to University Book Store, terms n/30.
14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered. The calculator cost $34.
20 Sold calculators costing $570 for $760 to Campus Card Shop, terms n/30.

Answer 1

Sept. 6 Purchased calculators from Green Box Co. at a total cost of $1,620, terms n/30.

Dr Inventory 1,620

Cr Accounts receivable 1,620

9 Paid freight of $50 on calculators purchased from Green Box Co.

Dr Inventory 50

Cr Cash 50

10 Returned calculators to Green Box Co. for $38 credit because they did not meet specifications.

Dr Accounts payable 38

Cr Inventory 38

12 Sold calculators costing $520 for $690 to University Book Store, terms n/30.

Dr Accounts receivable 690

Cr Sales revenue 690

Dr Cost of goods sold 520

Cr Inventory 520

14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered. The calculator cost $34.

Dr Sales revenue 45

Cr Accounts receivable 45

Dr Inventory 34

Cr Cost of goods sold 34

20 Sold calculators costing $570 for $760 to Campus Card Shop, terms n/30.

Dr Accounts receivable 760

Cr Sales revenue 760

Dr Cost of goods sold 570

Cr Inventory 570