Gradebook ORION Downloadable eTextbook ent BACK Problem 51A

Gradebook ORION Downloadable eTextbook ent ?BACK Problem 5-1A Powell\'s Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At consisted of books purchased for $1,800. During June, the following merchandising transactions occurred the end of May, Powell\'s June 1 Purchased books on account for $1,600 from Kine Publishers,FoB destination, terms 2/0, n/30. The appropriate party also made a cash payment of ss0 for the freight on this date 3 Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440 6 Received $100 credit for books returned to Kline Publishers 9 Paid Kline Publishers in full, less discount. 15 Recelved payment in full from Reading Rainbow. 17 Sold books on account to Blanco Books for $1,800. The cost of the books sold was $1,080 20 Purchased books on account for $1,500 from Dietz Publishers,Fros destination, terms 2/15, n/30. The appropriate party aliso made a cash payment of $50 for the 24 26 28 30 freight on this date. Recelved payment in full from Blanco Books. Paid Dietz Publishers in full, less discount. Sold books on account to Reddy Bookstore for $1,400. The cost of the books sold was s850. Granted Reddy Bookstore $120 credit for books returned costing $72. Powell\'s Book Warehouse\'s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold for t he month of June for Powell\'s Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) 9

Solution

June 1:
Merchandise inventory(db) 1600
Accounts payable(cr)1600
June 3:
Accounts receivbale(db) 2500
sales(Cr)2500
Cost of goods sold(db)1440
Merchandise inventory(cr)1440
Jun 6:
Account payable(db)100
merchandise inventory(cr)100
Jun 9:
discount=(1600-100)*2%=30
Accounts payable(db)1500
Cash(Cr)1470
Merchandise inventory(Cr)30
Jun 15:
Cash(db)2500
Account receivable(Cr)2500
Jun 17:
Account receivable(db)1800
sales(Cr)1800
cost of goods sold(db)1080
merchandise inventory(cr)1080
Jun 20:
Merchandise inventory(db)1550
account payable(cR)1500
cash(cR)50
Jun 24:
Cash(db)1080
account receivbale(cr)1080
Jun 26:
discount=2%*1500=30
cash(db)1470
sales discount(db)30
account receivbale(cr)1500
Jun 28:
Account receivbale(db)1400
sales(Cr)1400
cost of goods sold(db)850
merchandise inventory(cr)850
Jun 30:
sales return and allowance(db)120
account receivbale(cr)120
merchandise inventory(db)72
cost of goods soldcrb)72