Question

On September 1, Cheyenne Office Supply had an inventory of 30 calculators at a cost of $16 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

Sept. 6 Purchased 90 calculators at $24 each from York Co.
Sept. 9 Paid freight of $90 on calculators purchased from York Co.
Sept. 10 Returned 5 calculators to York Co. for $125 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 27 calculators costing $25 (including freight) for $32 each on account to Sura Book Store, terms n/30.
Sept. 14 Granted credit of $32 to Sura Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 33 calculators costing $25 for $35 each on account to Davis Card Shop, terms n/30.
Journalize the September transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem)

Answer 1

Date Account Titles and Explanation Debit Credit

Sept. 6 Inventory $2,160

(90*$24)

Cash $2,160

Sept. 9 Inventory $90

Cash $90

Sept. 10 Cash $125

Inventory $125

Sept. 12 Accounts Receivable $864

(27*$32)

Sales Revenue $864

(To record credit sale)

Sept. 12 Cost of Goods Sold $675

(27*$25)

Inventory $675

(To record cost of merchandise sold)

Sept. 14 Sales Returns and Allowances $32

Accounts Receivable $32

(To record merchandise returned)

Sept. 14 Inventory $25

Cost of Goods Sold $25

(To record cost of merchandise returned)

Sept. 20 Accounts Receivable $1,155

(33*$35)

Sales Revenue $1,155

(To record credit sale)

Sept. 20 Cost of Goods Sold $825

(33*$25)

Inventory $825

(To record cost of merchandise sold)