On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 100 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred:

Sept. 2Purchased 750 calculators for $20 each from Digital Corp. on account, terms n/30.

10 Returned 10 calculators to Digital for $200 credit because they did not meet specifications.

11 Sold 260 calculators for $30 each to Campus Book Store, terms n/30.

Sept. 14 Granted credit of $300 to Campus Book Store for the return of 10 calculators that were not ordered. The calculators were restored to inventory.

21 Sold 300 calculators for $30 each to Student Card Shop, terms 1/10, n/30.

29 Paid Digital the amount owing.

30 Received payment in full from the Student Card Shop.

Instructions

(a) Record the September transactions.

(b) Create T accounts for the Inventory and Cost of Goods Sold accounts. Enter the opening balances and post the September transactions.

(c) Determine the ending balances of inventory and cost of goods sold in both dollars and quantities.