Powell Varehouse distributes hardback books to retail stores and extends credit

Question

Powell Varehouse distributes hardback books to retail stores and extends credit terms of 2/10, ny20 to all of its customers. Durino the month of June, the following merchandising transactions oocurred. June 1 Purchased books on account for 1,165 (including freight) from Catin Publishers, terms 2/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $2,000. The cost of the merchandise sold was $750 6 Reccived $65 credit far books roturned to Catin Publishers. Paid Catin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $2,000. The cost the merchandise old was $900. 20 Purchd books on account for $50 from Pricalass Hook Publishers, tarms 2/15, ny3 24 Received payment in full from Bell Tower 26 Paid Priceless Dook Publishers in full. 28 Sold books on accunt to Gerieral Buokstore for $1,300. The cost of the mercharndise sold was $910 30 Granted General Hookstore $270 credt for bonks return d costing $85. ournalize the transactions for the month af lune for Pawell Warehouse, usinga perpctual inventory system. (If no entry is required, select "No Entry for the account titles and enter 0 for the arnounts. Creuit account titles are autonatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places e.g. 15,222.) Date Account Titles and Explanation Debit Credit To recod credt sale) (To retord cost of quods sod (To record credit sale) To recod cost of goods sold) una 24 (To record credit sale) (To retord cast of quods sod To reord credt granted for retumed goods) (To recod cost of g0ods returned)

Explanation / Answer

Jun-01 Inventory A/c Dr 1165 Catlin Publishers (Accounts Payable) Cr 1165 Jun-03 Garfunkel Bookstore (Accounts Receivable) Dr 2000 Sales Cr 2000 Jun-03 Cost of Goods Sold Dr 750 Inventory Cr 750 Jun-06 Catlin Publishers (Accounts Payable) Dr 65 Inventory Cr 65 Jun-09 Catlin Publishers (Accounts Payable) Dr 1100 Cash Cr 1078 Purchase Discount Cr 22 Jun-15 Cash Dr 2000 Garfunkel Bookstore (Accounts Receivable) Cr 2000 Jun-17 Bell Tower (Accounts Receivable) Dr 2000 Sales Cr 2000 Jun-17 Cost of Goods Sold Dr 900 Inventory Cr 900 Jun-20 Inventory A/c Dr 750 Priceless Book Publishers (Accounts Payable) Cr 750 Jun-24 Cash Dr 2000 Bell Tower (Accounts Receivable) Cr 2000 Jun-26 Priceless Book Publishers (Accounts Payable) Dr 750 Cash Cr 750 Jun-28 General Book Store (Accounts Receivable) Dr 1300 Sales Cr 1300 Jun-28 Cost of Goods Sold Dr 910 Inventory Cr 910 Jun-30 Sales Return Dr 270 General Book Store (Accounts Receivable) Cr 270 Jun-30 Inventory Dr 85 Cost of Goods Sold Cr 85

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