Question

DS Unlimited has the following transactions during August.

August 6 Purchases 52 handheld game devices on account from GameGirl, Inc.,
for $110 each, terms 2/10, n/60.
August 7 Pays $310 to Sure Shipping for freight charges associated with the
August 6 purchase.
August 10 Returns to GameGirl seven game devices that were defective.
August 14 Pays the full amount due to GameGirl.
August 23 Sells 32 game devices purchased on August 6 for $130 each to
customers on account. The total cost of the 32 game devices sold is
$3,670.00.
Required:
Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system.

Answer 1

Date Account Title Debit Credit

Aug-06 Inventory $5,720

(52 * $110)

Accounts Payable $5,720

Aug-07 Inventory $310

Cash $310

Aug-10 Accounts Payable $770

(7 * $110 )

Inventory $770

Aug-14 Accounts Payable $4,950

Inventory $99

Cash $4,851

Aug-23 Accounts Receivable $4,160

( 32*$130)

Sales revenue $4,160

Aug-23 Cost of goods sold $3,670

Inventory $ 3,670