Assume that on September 1, Office Depot had an inventory that included a variet

Question

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 Dragoo Co. at a total cost of $1,680, terms n/30. 9 Paid freight of $60 on calculators purchased from Dragoo Co. 10 Returned calculators to Dragoo Co. for $58 credit because they did not meet specifications. 12 Sold calculators costing $580 for $810 to Fryer Book Store, terms n/30. 14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $33. 20 Sold calculators costing $570 for $740 to Heasley Card Shop, terms n/30.

Explanation / Answer

Date Particulars Debit Credit Sep-06 Inventory………………………..DR 1680 To Accounts Payable 1680 (Being Credit Purchases Made) Sep-09 Inventory……………………….DR 60 To Cash 60 (Being Freight Paid) Sep-10 Accounts Payable…………………….DR 58 To Inventory 58 (Being Goods Returned to Supplier) Sep-12 Accounts Receivable……………..DR 810 To Sales 810 (Sales made to Fryer Book Store) Cost of Goods Sold 580 To Inventory 580 (Cost of Goods Sold to Fryer) Sep-14 Sales Return 45 To Accounts Receivable 45 (Sales Return from Fryer) Inventory 33 To Cost of Goods Sold 33 Cost of Sale Return from Fryer) Sep-20 Accounts Receivable……………..DR 740 To Sales 740 (Sales made to Heasley Card Shop) Cost of Goods Sold 570 To Inventory 570 (Cost of Goods Sold to Heasley Card Shop)

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