On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 10 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred:

Sept. 2 Purchased 75 calculators for $20 each from Digital Corp. on account, terms n/30.

10 Returned two calculators to Digital for $40 credit because they did not meet specifications.

11 Sold 26 calculators for $30 each to Campus Book Store, terms n/30.

14 Granted credit of $30 to Campus Book Store for the return of one calculator that was not ordered. The calculator was restored to inventory.

21 Sold 30 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 Merchandise Inventory and Cost of Goods Sold accounts. Post the opening balances and the September transactions.

(c) Determine the ending balances in both dollars and quantities.