Journalize purchase and sale transactions under a perpetual inventory system. (L
ID: 2475203 • Letter: J
Question
Journalize purchase and sale transactions under a perpetual inventory system. (LO 2,3), AP Cosmotologist Warehouse distributes commercial hair care products in one-gallon bottles to hair salons and extends credit terms of 3/10, n/30 to all of its customers. During the month of April, the following merchandising transactions occurred. Apr. 1 Purchased 190 bottles on account for $6 each (including freight) from Luminous Hair, terms 2710, n/30. 3 Sold 40 bottles on account to the Jane's Hair Salon for $10 each. 6 Received S90 credit for 15 bottles returned to Luminous Hair. 9 Paid Luminous Hair in full. 12 Received payment in full from the Jane's Hair Salon. 13 Sold 25 bottles on account to Luxury Salon for $12 each. 20 Purchased 200 bottles on account for $6 each from Blond Beauty, terms 1/15, n/30. 24 Received payment in full from Luxury Salon. 26 Paid Blond Beauty in full. 28 Sold 160 bottles on account to Beautiful Cuts salons for $10 each. 30 Granted Beautiful Cuts for 20 credit for 12 bottles returned costing $72. Journalize the transactions for the month of April for Cosmotologist Warehouse, using a perpetual inventory system. Assume the cost of each bottle sold was $6.Explanation / Answer
Journal Entries Date Particular Amount (DR) Amount(CR) 1-Apr Mercendise Inventory(Bottles) $ 1,140.00 Luminous $ 1,140.00 3-Apr Jane's Hair Salon $ 400.00 Sales $ 400.00 3-Apr Cost of Goods sold $ 240.00 Mercendise Inventory(Bottles) $ 240.00 6-Apr Luminous $ 90.00 Mercendise Inventory(Bottles) $ 90.00 9-Apr Luminous $ 1,050.00 Cash $ 1,029.00 Discount $ 21.00 12-Apr Cash $ 400.00 Jane's Hair Salon $ 400.00 13-Apr Luxury Salon $ 300.00 Sales $ 300.00 13-Apr Cost of goods sold $ 150.00 Mercendise Inventory(Bottles) $ 150.00 20-Apr Mercendise Inventory(Bottles) $ 1,200.00 Blond Beauty $ 1,200.00 24-Apr Cash $ 300.00 Luxury Salon $ 300.00 26-Apr Blond Beauty $ 1,200.00 Cash $ 1,188.00 Discount $ 12.00 28-Apr Beauty Cuts Salon $ 1,600.00 Sales $ 1,600.00 28-Apr Cost of goods sold $ 960.00 Mercendise inventory $ 960.00 30-Apr Mercendise Inventory(Bottles) $ 72.00 Beauty Cuts Salon $ 72.00 Mercendise Inventory Luminos $ 1,140.00 $ 42,463.00 Jain's Hair Salon $ 240.00 Blont Beauty $ 1,200.00 $ 42,466.00 Luminos $ 90.00 Granted Beautiful Cuts $ 72.00 $ 42,473.00 Luxury Salon $ 150.00 $ 42,488.00 Beauty cut Salon $ 960.00 $ 42,490.00 Closing Stock(162 Bottles@$6) $ 972.00 Total $ 2,412.00 Total $ 2,412.00
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