Question

amarisk, Inc. uses a perpetual inventory system. Its beginning inventory consists of 280 units that cost $220 each. During August, the company purchased 380 units at $220 each, returned 10 units for credit, and sold 540 units at $400 each. Journalize the August transactions.

Answer 1

Answer: See explanation

Step-by-step explanation:

The August transaction will be journalized as follows:

Debit Inventory 380 × 220 = 83600

Credit Account Payable 83600

(To record inventory purchase)

Debit Account payable 10 × 220 = 2200

Credit Inventory 2200

(To record inventory purchase)

Debit Account receivable 540 × 400 = 216000

Credit Sales revenue 216000

(To record sales)

Debit Cost of goods sold 540 × 220 = 118800

Credit Inventory 118800

(To record cost of goods sold)