Nick Foles is the purchasing manager at Pederson\'s Bargain Store, a retail shop
ID: 2551189 • Letter: N
Question
Nick Foles is the purchasing manager at Pederson's Bargain Store, a retail shop in Philadelphia, PA During the month of June, the store purchased goods from two suppliers in order to add merchandise to its store shelves. The sequence of June events was as follows: June 3 Purchased goods for $8,100 from DarrenSproles Inc. with terms 2/10, n/30 5 Returned goods costing $3,100 to DarrenSproles Inc. for full credit 6 Purchased goods from CoreyClement Corp. for $3,000 with terms 2/10, n/30 11 Paid the balance owed to DarrenSproles Inc. 22 Paid CoreyClement Corp. in full. Required 1. Prepare journal entries to record the June transactions, assuming Pederson's uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 3 Record the inventory purchased of $8,100 on account from DarrenSproles Ind. with terms 2/10, n/30. Note: Enter debits before credits. Date General Journal DebitCredit June 03Explanation / Answer
1)
Date
Account
Debit
Credit
03-Jun
Inventory
$8,100
Accounts payable (DarrenSproles)
$8,100
05-Jun
Accounts payable (DarrenSproles)
$3,100
Inventory
$3,100
06-Jun
Inventory
$3,000
Accounts payable (CoreyClement)
$3,000
11-Jun
Accounts payable (DarrenSproles)
$5,000
Discounts
$100
Cash
$4,900
22-Jun
Accounts payable (CoreyClement)
$3,000
Cash
$3,000
2) Cost of inventory = $8,100 - $3,100 - $100 + $3,000 = $7,900
Date
Account
Debit
Credit
03-Jun
Inventory
$8,100
Accounts payable (DarrenSproles)
$8,100
05-Jun
Accounts payable (DarrenSproles)
$3,100
Inventory
$3,100
06-Jun
Inventory
$3,000
Accounts payable (CoreyClement)
$3,000
11-Jun
Accounts payable (DarrenSproles)
$5,000
Discounts
$100
Cash
$4,900
22-Jun
Accounts payable (CoreyClement)
$3,000
Cash
$3,000
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