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

Answer and Explanation:

The journal entries are shown below:

Inventory $1,600 (80 × $20)

To Accounts Payable $1,600

(Being inventory purchased on account)

Inventory $80

To Cash $80

(Being the freight charges is paid)

Accounts Payable $63

To Inventory $63

(being returned inventory is recorded

Accounts Receivable $806 (26 × $31)

To Sales Revenue $806

(Being sale of calculators on account is recorded)

Cost of Goods Sold $546 (26 × $21)

To Inventory $546

(being cost of calculators sold is recorded)

Sales Returns and Allowances $31

To Accounts Receivable $31

(Being return of calculator that is recorded)

Inventory $31

Cost of Goods Sold $31

(Being cost of calculators returned is recorded)

Accounts Receivable $960 (30 × $32)

To Sales Revenue $960

(Being sale of calculators on account is recorded)

Cost of Goods Sold $630 (30 × $21 )

To Inventory $630

(Being cost of calculators sold is recorded)