Conslder the following transactions for Bozo\'s Toys: (Click the icon to view th

Question

Conslder the following transactions for Bozo's Toys: (Click the icon to view the transactions.) Requirements 1. Journalize the purchase transactions. Explanations are not required. 2. In the final analysis, how much did the inventory cost Bozo's Toys? Requiremen 1. Joumalize the purchase transactions. Explanations are not required. (Assume the company uses a perpetual inventory system. Record debits first, then credits. Exclude explanations from journal entries.) Jun. 8: Bozo's Toys buys $132,800 worth of MegoBlock toys on account with credit terms of 2/10, n 45 Date Debit Credit Jun. 8 More Info Jun. 8 Bozo's Toys buys $132,800 worth of MegoBlock toys on account with oredit terms of 210, n45. Jun. 11: Bczo's Toys returns $13,200 of the merchandise to MegoBlock due to damage during shipment. 11 Bozo's Toys returns $13,200 of the merchandise to MegoBlock due to damage during Date Debit Credit shipment 16 Bozos Toys paid the amount due, less the return and discount Jun. 11 Print Done Jun. 16: Bozo's Toys pald the amount due, less the retum and discount. Date Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

Journal entry :

2) The inventory cost for Bozo's Toys is (132800-13200-2392) = $117208

Date accounts & explanation debit credit jan 8 Inventory 132800 Account payable 132800 Jan 11 Account payable 13200 Inventory 13200 Jan 16 Account payable (132800-13200) 119600 Cash (119600*98%) 117208 Inventory 2392

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