Exercise 5-3 (Part Level Submission)

On November 1, the beginning of its fiscal year, Thietke Company Ltd. had an inventory of 16 backpacks at a cost of $21 each. The company uses a perpetual inventory system. During November, the following transactions occurred:

Nov.2Purchased 81 backpacks for $21 each from Digital Corp. on account, terms n/30.10Returned 4 backpacks to Digital for $84 credit because they did not meet specifications.11Sold 32 backpacks for $30 each to Thietke Book Store, terms n/30.14Granted credit of $30 to Thietke Book Store for the return of 1 backpack that was not ordered. The backpack was restored to inventory.21Sold 39 backpacks for $30 each to Student Card Shop, terms 1/10, n/30.29Paid Digital the amount owing.30Received payment in full from the Student Card Shop.