GoodJob Ltd. Buys and sells home appliances and uses the perpetual inventory system. During the year 2011, the company had the following transactions:
Jan 15
Purchased vacuum cleaners worth $57,000 from V Wholesalers, on account.
Feb 4
Sold vacuum cleaners for $40,000 cash, which includes a 3-year warranty. GoodJob bought these vacuum cleaners for $26,667.
Feb 4
Recorded $11,000 of estimated warranty liability for the year.
Feb 15
Paid the full amount owing to V Wholesalers.
May 8
Received utilities bill for $4,500, to be paid exactly after 15 days.
Jul 11
Received $52,000 cash for the sale of vacuum cleaners which cost the company $37,143. The delivery is to be made on August 31.
Aug 31
Delivered the vacuum cleaners paid for on July 11.
