Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6 Purchased calculators from Blossom Co. at a total cost of $1,750, terms n/30.
9 Paid freight of $50 on calculators purchased from Blossom Co.
10 Returned calculators to Blossom Co. for $58 credit because they did not meet specifications.
12 Sold calculators costing $510 for $700 to Fryer Book Store, terms n/30.
14 Granted credit of $35 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $25.
20 Sold calculators costing $680 for $880 to Heasley Card Shop, terms n/30.
SHOW ALL WORK LIKE A JOURNAL ENTRY SHOULD LOOK.

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amcool amcool · Answer 1 · 2020-06-09T05:12:07+02:00

Answer:

See the journal and the explanation underneath each transaction below.

Explanation:

The journal entry will look as follows:

Date Details Dr ($) Cr ($)

Sept. 06 Merchandise Inventory 1,750

Accounts payable 1,750

To record purchase of calculators on account.

Sept. 09 Merchandise Inventory 50

Cash 50

To record Freight paid on purchase of Merchandise Inventory.

Sept. 10 Accounts payable 58

Merchandise Inventory 58

To record calculator returned Blossom Co.

Sept. 12 Accounts Receivable 700

Sales 700

To record sale of calculators on account.

Sept. 12 Cost of goods sold 510

Merchandise Inventory 510

To transfer cost of calculators sold.

Sept. 14 Sales return and discounts 35

Accounts receivable 35

To record return of calculator sold which was not ordered.

Sept. 14 Merchandise Inventory 25

Cost of goods sold 25

To record cost of goods sold that was returned.

Sept. 20 Accounts Receivable 880

Sales 880

To record calculators sold on account.

Sept. 20 Cost of goods sold 680

Merchandise Inventory 680

To record cost of goods sold.