* Problem 5-2A (Part Level Submission) Pronghom Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Pronghorn's inventory consists of 270 books purchased at $19 each. Pronghorn uses a perpetual inventory system. During the month of June, the following merchandise transactions occurred: June 1 3 5 B 9 Purchased 200 books on account for $17 cach from Reader's World Publishers, terms n/45. Sold 220 books on account to The Book Nook for $25 each, with an assumed average cost of $18, terms 2/10, n/45. Received a $153 credit for 9 books returned to Reader's World Publishers. Sold 100 books on account to Read-A-Lot Bookstore for $24 each, with an assumed average cost of $18, terms 2/10, n/45. Issued a $264 credit memorandum to Read-A-Lot Bookstore for the return of 11 damaged books. The books were determined to be no longer saleable and were destroyed. Purchased 130 books on account for $15 each from Read More Publishers, terms n/45. Received payment in full from The Book Nook. Received payment in full from Read-A-Lot Bookstore. Sold 125 books on account to Reader's Bookstore for $25 each, with an assumed average cost of $18, terms 2/10, n/45. Granted Reader's Bookstore a $350 credit for 14 returned books. These books were restored to inventory Pald Reader's World Publishers in full. 11 12 17 22 25 29 *(a) Your answer is correct. Is the Pronghom Book Warehouse a retailer or a wholesaler? The Pronghorn Book Warehouse is a wholesaler Attempts: 1 of 15 used *(b) Your answer is partially correct. Try again. Record the June transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all answers to decimal places, e.g. 125. If no entry is required, select "Mo Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation June 1' Inventory TAccounts Payable 13400 13400 3 | Accounts Payable IlInventory Your answer is partially correct. Try again. Record the lune transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all answers to 0 decimal places, e.g. 125. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit June 1'inventory 13400 4 TAccounts Payable 3400 X 3 Accounts Payable X Inventory (To record sales) EX 3 E (To record cost of goods sold) 5 K X 8 (To record sales) 8 (To record cost of goods sold) 9 11 E 12 || 11 X 12 X 17 X 22 X (To record sales) 22 (To record cost of goods sold) 25 K (To record sales returns) 25 (To record cost of goods returned) 29 E (To record sales returns) 25 (To record cost of goods returned) 29 Attempts: 1 of 15 used *(c) Create a T account for the Inventory account. Enter the opening balance, post the June transactions related to Inventory, and determine the ending balance in the account. Inventory Attempts: 0 of 15 used *(d) Determine the number of books Pronghom has on hand on June 30. What is the average cost of these books on June 307 (Hint: Divide the ending balance in the Inventory account calculated in part (c) and divide it by the number of books on hand at June 30.) (Round average cost per book to 2 decimal places, e.g. 5.25.) Books on hand at June 30 Average cost per book Cosy 0-2020 by som led