On June 5, Staley Electronics purchases 150 units of inventory on account for $1

Question

On June 5, Staley Electronics purchases 150 units of inventory on account for $15 each. After closer examination, Staley determines 40 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $25 each. Required: Record transactions for the purchase, return, and sale of inventory assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

Journal Entries:

June 5

Debit Inventory $2250

Credit Accounts Payable $2250

June 9

Debit Accounts Payable $600

Credit Purchase Return $600

June 16

Debit Accounts Receivables $2750

Credit Sales revenue $2750

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