Question

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Blossom Co. at a total cost of $1,600, terms n/30. 9 Paid freight of $40 on calculators purchased from Blossom Co. 10 Returned calculators to Blossom Co. for $50 credit because they did not meet specifications. 12 Sold calculators costing $450 for $600 to Fryer Book Store, terms n/30. 14 Granted credit of $35 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $25. 20 Sold calculators costing $500 for $650 to Heasley Card Shop, terms n/30. Journalize the September 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. Record journal entries in the order presented in the problem.)

Answer 1

Journal entries

Step-by-step explanation:

The journal entries are as follows

On Sep 6

Merchandise Inventory $ 1,600

To Accounts Payable $1,600

(Being the merchandise inventory is purchased on account)

On Sep 9

Merchandise inventory Dr $40

To Cash $40

(Being freight is paid by cash)

On Sep 10

Cash Dr $50

To Merchandise inventory $50

(Being returned inventory is recorded)

On Sep 12

Accounts receivable Dr $600

To sales $600

(Being calculators sold at sale price)

Cost of goods sold Dr $450

To Merchandise inventory $450

(Being calculator sold at cost price)

On Sep 14

Sales return and allowance Dr $35

To Accounts receivable $35

(Being sales return is recorded)

Merchandise inventory Dr $25

To Cost of goods sold $25

(Being sales return is recorded)

On Sep 20

Accounts receivable Dr $650

To sales $650

(Being calculators sold at sale price)

Cost of goods sold Dr $500

To Merchandise inventory $500

(Being calculator sold at cost price)