On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory...

 

 

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On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 92 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 690 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 14 calculators to Digital for $280 credit because they did not meet specifications. Sold 270 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $420 to Campus Book Store for the return of 14 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store. Date Sept. 2 Sept. 10 Sept. 11 Sept. 11 Account Titles and Explanation Merchandise Inventory Accounts Payable Accounts Payable Merchandise Inventory Accounts Receivable Sales Revenue To record sold 270 calculators for $30 each on account, tern (To record credit sale) Cost of Goods Sold Merchandise Inventory To record cost of goods sold 270 calculators for $20 each. (To record cost of merchandise sold) Debit 13,800 280 ||||| 8,100 5,400 Credit 13 8 III 5 Sept. 11 Sept. 14 V Sept. 14 Sept. 29 Sept 30 Cost of Goods Sold Merchandise Inventory To record cost of goods sold 270 calculators for $20 each (To record cost of merchandise sold) Sales Returns and Allowances Accounts Receivable (To record return of goods) Merchandise Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Payable Cash Cash Accounts Receivable 5,400 420 280 13,520 7,680 13 Sept. 14 Sept. 29 v Sept. 30 Accounts Receivable (To record return of goods) Merchandise Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Payable Cash Cash Accounts Receivable. 280 13,520 7,680 13 On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 92 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 690 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 14 calculators to Digital for $280 credit because they did not meet specifications. Sold 270 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $420 to Campus Book Store for the return of 14 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store. Date Sept. 2 Sept. 10 Sept. 11 Sept. 11 Account Titles and Explanation Merchandise Inventory Accounts Payable Accounts Payable Merchandise Inventory Accounts Receivable Sales Revenue To record sold 270 calculators for $30 each on account, tern (To record credit sale) Cost of Goods Sold Merchandise Inventory To record cost of goods sold 270 calculators for $20 each. (To record cost of merchandise sold) Debit 13,800 280 ||||| 8,100 5,400 Credit 13 8 III 5 Sept. 11 Sept. 14 V Sept. 14 Sept. 29 Sept 30 Cost of Goods Sold Merchandise Inventory To record cost of goods sold 270 calculators for $20 each (To record cost of merchandise sold) Sales Returns and Allowances Accounts Receivable (To record return of goods) Merchandise Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Payable Cash Cash Accounts Receivable 5,400 420 280 13,520 7,680 13 Sept. 14 Sept. 29 v Sept. 30 Accounts Receivable (To record return of goods) Merchandise Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Payable Cash Cash Accounts Receivable. 280 13,520 7,680 13

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Answer a JOURNAL ENTRIES IN THE BOOKS OF CAMPUS OFFICE SUPPLY LTD PERPETUAL INVENTORY SYSTEM Date Ac... View the full answer