Perpetual inventory system
:confused: Okay, this accounting class is not fun anymore! I would suggest to anyone, not to do online college with accounting. At least for me, it would help to actually have someone explain and show it to me. Anyway, I posted on my blackboard to no answers, have an assignment due tomorrow. Is anyone game to checking this for me.. Thank you in advance! Ritafajita
My copy and paste came out weird, it's a credit/debit pick with a drop down menu to pick one of the choices. I have most of my answers, just can't get cost of goods sold
Phantom Book Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Phantom's inventory consisted of 240 books purchased at $1,200. During the month of June the following merchandising transactions occurred. June 1 Purchased 160 books on account for $5 each from Ex Libris Publishers, FOB destination,terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.
3 Sold 120 books on account to Readers-R-Us for $10 each.
6 Received $50 credit for 10 books returned to Ex Libris Publishers.
9 Paid Ex Libris Publishers in full, less discount.
15 Received payment in full from Readers-R-Us.
17 Sold 120 books on account to Bargain Books for $10 each.
20 Purchased 110 books on account for $5 each from Bookem Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.
24 Received payment in full from Bargain Books.
26 Paid Bookem Publishers in full, less discount.
28 Sold 110 books on account to Read-n-Weep Bookstore for $10 each.
30 Granted Read-n-Weep Bookstore $150 credit for 15 books returned costing $ 75.
Instructions
Journalize the transactions for the month of June for Phantom Book Warehouse using a perpetual inventory system.
(a) June 1
Debit Merchandise Inventory
800
Credit
Accounts Payable
800
June 3
Debit
Accounts Receivable
1200
Credit
Sales
1200
Debit
Cost of Goods Sold
Credit
Merchandise Inventory
June 6
Debit Accounts Payable
50
Credit
Merchandise Inventory
50
June 9
Debit Accounts Payable
Credit
Merchandise Inventory
Credit
Cash
June 15
Debit Cost of Goods SoldSales DiscountsSalesAccounts ReceivableAccounts PayableSales Returns and AllowancesCashMerchandise Inventory
1200
Credit
Merchandise InventoryAccounts ReceivableAccounts PayableCashSalesCost of Goods SoldSales DiscountsSales Returns and Allowances
1200
June 17
Debit Accounts Receivable
1200
Credit
Sales
1200
Debit Cost of Goods Sold
Credit
Merchandise Inventory
June 20
Debit Merchandise Inventory
550
Credit
Accounts Payable
550
June 24
Debit Cash
Debit Sales Discounts
Credit
Accounts Receivable
June 26
Debit Accounts Payable
Credit Merchandise Inventory
Credit Cash
June 28
Debit Accounts Receivable
1100
Credit
Sales
1100
Debit Cost of Goods Sold
Credit
Merchandise Inventory
June 30
Debit Sales Returns and Allowances
150
Credit
Accounts Receivable
150
Debit Merchandise Inventory
75
Credit
Cost of Goods Sold
75
