Question

On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.

Answer 1

Sept 6. DR Inventory (80 * 20) 1,600

CR Accounts Payable $1,600

Sept 9. DR Inventory 80

CR Cash 80

Sept 10. DR Accounts Payable 63

CR Inventory 63

Sept 12. DR Accounts Receivable (26 * 31) 806

CR Sales Revenue 806

DR Cost of Goods Sold (21 * 26) 546

CR Inventory 546

Sept 14. DR Sales Returns and Allowances 31

CR Accounts Receivable 31

DR Inventory 21

CR Cost of Goods Sold 21

Sept. 20 DR Accounts Receivable (30 * 32) 960

CR Sales Revenue 960

DR Cost of Goods Sold (30 * 21) 630

CR Inventory 630