Required: Prepare journal entries to record the following four transactions for

Question

Required: Prepare journal entries to record the following four transactions for the Labatt Company using the perpetual inventory method. (Omit explanations for the entries.) June 1 - purchased on account inventory costing $10,000 terms 4/10 n/30. June 9 - returned inventory costing $1,000 that was purchased on June 1. June 10 - paid for the merchandise purchased on June 1. June 15 - sold one half of its inventory for $8,000 on account. (Assume the inventory purchased on June 1 was the company's only inventory.) Solution: Date Account Debit Credit 1-Jun 9-Jun 10-Jun 15-Jun Required: Prepare journal entries to record the following four transactions for the Labatt Company using the perpetual inventory method. (Omit explanations for the entries.) June 1 - purchased on account inventory costing $10,000 terms 4/10 n/30. June 9 - returned inventory costing $1,000 that was purchased on June 1. June 10 - paid for the merchandise purchased on June 1. June 15 - sold one half of its inventory for $8,000 on account. (Assume the inventory purchased on June 1 was the company's only inventory.) Solution: Date Account Debit Credit 1-Jun 9-Jun 10-Jun 15-Jun Required: Prepare journal entries to record the following four transactions for the Labatt Company using the perpetual inventory method. (Omit explanations for the entries.) June 1 - purchased on account inventory costing $10,000 terms 4/10 n/30. June 9 - returned inventory costing $1,000 that was purchased on June 1. June 10 - paid for the merchandise purchased on June 1. June 15 - sold one half of its inventory for $8,000 on account. (Assume the inventory purchased on June 1 was the company's only inventory.) Solution: Date Account Debit Credit 1-Jun 9-Jun 10-Jun 15-Jun

Explanation / Answer

Date Account Titles & Explanations Debit Credit 1-Jun merchandise inventory 10000        accounts payable 10000 9-Jun accounts payable 1000        merchandise inventory 1000 10-Jun accounts payable 9000       cash 9000 15-Jun accounts receivable 8000       sales 8000 cost of goods sold 4500       merchandise inventory 4500

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