Headland Company uses a perpetual inventory system Its begin

Headland Company uses a perpetual inventory system. Its beginning inventory consists of 53 units that cost $36 each. During June, (1) the company purchased 158 units at $36 each, (2) returned 6 units for credit, and (3) sold 131 units at $53 each. Journalize the June transactions. (If no entry is required, select \"No entry\" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) (3) (To record sales) (To record cost of goods sold)

Solution

No

Account Titles & Explanation

Debit

Credit

1

Inventory (158 * 36)

5688

Accounts Payable

5688

2

Accounts Payable (36 * 6)

216

Inventory

216

3

Account Receivable (131 * 53)

6943

Sales Revenue

6943

(To record sales)

4

Cost of Goods Sold (131 * 36)

4716

Inventory

4716

(To record of Cost of Goods Sold)