Seaforth Sunglasses had the following transactions in December. The beginning inventory on 1 December consisted of 320 pairs of sunglasses at $80 each.

Required

(a) Prepare journal entries to record the transactions, assuming that a perpetual inventory system is used.

(b) Post the entries to T accounts, assuming no beginning balances in the cash, receivables and payables accounts.

(c) Assuming that the business closes its accounting records each month, prepare entries to close the income statement accounts based on the above data and assuming that all other expenses for December amounted to $8430.

Transcribed Image Text:

Dec. 3 9 14 26 27 Purchased 302 pairs of sunglasses for $80 each on credit. Returned 10 pairs of sunglasses that had scratches in the lenses. Sold 190 pairs of sunglasses for $150 each on account. A customer returned 3 pairs of sunglasses sold on 14 December. Sold 64 pairs of sunglasses for $160 each on account. 31 A physical inventory count shows 358 pairs of sunglasses on hand at a total cost of $28 640.