Question

Powell Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.

June 1 Purchased books on account for $3,065 (including freight) from Catlin Publishers, terms 4/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,000. The cost of the merchandise sold was $850.
6 Received $65 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,050. The cost of the merchandise sold was $750.
20 Purchased books on account for $700 from Priceless Book Publishers, terms 2/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $2,600. The cost of the merchandise sold was $750.
30 Granted General Bookstore $260 credit for books returned costing $65.

Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system

Answer 1

To journalize the transactions for June for Powell Warehouse, we need to record each transaction in the journal using a perpetual inventory system. The journal entries include purchases, sales, returns, and supplier payments. These entries accurately reflect the financial activities of Powell Warehouse during June.

Step-by-step explanation:

To journalize the transactions for June for Powell Warehouse, we need to record each transaction in the journal using a perpetual inventory system. Here is the journal entry for each transaction:

June 1:

Debit: Purchases $3,065

Credit: Accounts Payable $3,065

June 3:

Debit: Accounts Receivable (Garfunkel Bookstore) $1,000

Credit: Sales $1,000

Debit: Cost of Goods Sold $850

Credit: Inventory $850

June 6:

Debit: Accounts Payable (Catlin Publishers) $65

Credit: Accounts Receivable (Catlin Publishers) $65

June 9:

Debit: Accounts Payable (Catlin Publishers) $3,000

Credit: Cash $3,000

June 15:

Debit: Cash (Garfunkel Bookstore) $1,000

Credit: Accounts Receivable (Garfunkel Bookstore) $1,000

June 17:

Debit: Accounts Receivable (Bell Tower) $1,050

Credit: Sales $1,050

Debit: Cost of Goods Sold $750

Credit: Inventory $750

June 20:

Debit: Purchases $700

Credit: Accounts Payable (Priceless Book Publishers) $700

June 24:

Debit: Cash (Bell Tower) $1,050

Credit: Accounts Receivable (Bell Tower) $1,050

June 26:

Debit: Accounts Payable (Priceless Book Publishers) $700

Credit: Cash $700

June 28:

Debit: Accounts Receivable (General Bookstore) $2,600

Credit: Sales $2,600

Debit: Cost of Goods Sold $750

Credit: Inventory $750

June 30:

Debit: Sales Returns and Allowances $260

Credit: Accounts Receivable (General Bookstore) $260

Debit: Inventory $65

Credit: Cost of Goods Sold $65

These journal entries record the transactions for June for Powell Warehouse, using a perpetual inventory system.

Answer 2

Step-by-step explanation:

The journal entries for all the credit and cash transactions are recorded. The dates of the transactions are mentioned in the journal entries. Each respective account is debited and credited accordingly.

In the books of Powell Warehouse the following journal entries are recorded.