PROBLEMS SET A to retail stores and extends P51A Kerns Book

PROBLEMS: SET A to retail stores and extends P5-1A Kern\'s Book Warehouse distributes hardcover boo credit terms of 2/10, n/30 tions occurred. June 1 Purchased books on account for S to all of its customers. At the end of May, Kern\'s inventory con- or $1,800. During June, the following merchandising transac- P 1,600 from Binsfeld Publishers, FOB made a cash estination, terms 2/10, n/30. The appropriate party also payment of $50 for the freight on this date Sold books o sold was $1,440 old waks on account to Reading Rainbow for $2,500. The cost of the Received $100 credit for books returned to Binsfeld Publishers. Paid Binsfeld Publishers in full, less discount. 9 15 17 Received payment in full from Reading Rainbow. Sold books on account to Rapp Books for $1,800. The cost of the books sold was $1,080 20 Purchased books on account or $1,800 from McGinn Publishers, FOB destination, terms 2/15, n/30. The appropr payment of $60 for the freight on this date Received payment in full from Rapp Books. Paid McGinn Publishers in full, less discount. Sold books on account to Baeten Bookstore for sold was $970. iate party also made a cash 24 26 28 $1,600. The cost of the books 30 Granted Baeten Bookstore $120 credit for books returned costing $72 Kern\'s Book Warehouse\'s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No, 120 Inventory, No. 201 Accounts Payable, No nue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. . 401 Sales Reve- Instructions Journalize the transactions for the month of June for Kern\'s Book Warehouse using a per- petual inventory system. completed the following merchandising transactions in

Solution

June 1 Inventory 120 1600 Accounts payable 201 1600 3 Accounts receivable 112 2500 Sales revenue 401 2500 Cost of goods sold 505 1440 Inventory 120 1440 6 Accounts payable 201 100 Inventory 120 100 9 Accounts payable (1600-100) 201 1500 Inventory (discount of 1500*2%) 120 30 Cash 101 1470 15 Cash 101 2500 Accounts receivable 112 2500 17 Accounts receivable 112 1800 Sales revenue 401 1800 Cost of goods sold 505 1080 Inventory 120 1080 20 Inventory 120 1800 Accounts payable 201 1800 24 Cash 101 1800 Accounts receivable 112 1800 26 Accounts payable 201 1800 Inventory (discount of 1800*2%) 120 36 Cash 101 1764 28 Accounts receivable 112 1600 Sales revenue 401 1600 Cost of goods sold 505 970 Inventory 120 970 30 Sales returns and allowances 412 120 Accounts receivable 112 120 Inventory 120 72 Cost of goods sold 505 72