logistic_guy
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\(\displaystyle \text{Kern’s Book Warehouse}\) distributes hardcover books to retail stores and extends credit terms of \(\displaystyle 2/10, n/30\) to all of its customers. At the end of May, \(\displaystyle \text{Kern}\)’s inventory consisted of books purchased for \(\displaystyle \$ 1,800\). During June, the following merchandising transactions occurred.
June
\(\displaystyle \bold{1}\) Purchased books on account for \(\displaystyle \$ 1,600\) from \(\displaystyle \text{Binsfeld Publishers}\), FOB destination, terms \(\displaystyle 2/10, n/30\). The appropriate party also made a cash payment of \(\displaystyle \$ 50\) for the freight on this date.
\(\displaystyle \bold{3}\) Sold books on account to \(\displaystyle \text{Reading Rainbow}\) for \(\displaystyle \$ 2,500\). The cost of the books sold was \(\displaystyle \$ 1,440\).
\(\displaystyle \bold{6}\) Received \(\displaystyle \$ 100\) credit for books returned to \(\displaystyle \text{Binsfeld Publishers}\).
\(\displaystyle \bold{9}\) Paid \(\displaystyle \text{Binsfeld Publishers}\) in full, less discount.
\(\displaystyle \bold{15}\) Received payment in full from \(\displaystyle \text{Reading Rainbow}\).
\(\displaystyle \bold{17}\) Sold books on account to \(\displaystyle \text{Rapp Books}\) for \(\displaystyle \$ 1,800\). The cost of the books sold was \(\displaystyle \$ 1,080\).
\(\displaystyle \bold{20}\) Purchased books on account for \(\displaystyle \$ 1,800\) from \(\displaystyle \text{McGinn Publishers}\), FOB destination, terms \(\displaystyle 2/15, n/30\). The appropriate party also made a cash payment of \(\displaystyle \$ 60\) for the freight on this date.
\(\displaystyle \bold{24}\) Received payment in full from \(\displaystyle \text{Rapp Books}\).
\(\displaystyle \bold{26}\) Paid \(\displaystyle \text{McGinn Publishers}\) in full, less discount.
\(\displaystyle \bold{28}\) Sold books on account to \(\displaystyle \text{Baeten Bookstore}\) for \(\displaystyle \$ 1,600\). The cost of the books sold was \(\displaystyle \$ 970\).
\(\displaystyle \bold{30}\) Granted \(\displaystyle \text{Baeten Bookstore}\) \(\displaystyle \$ 120\) credit for books returned costing \(\displaystyle \$ 72\).
\(\displaystyle \text{Kern’s Book Warehouse’s}\) chart of accounts includes the following: No. \(\displaystyle 101\) Cash, No. \(\displaystyle 112\) Accounts Receivable, No. \(\displaystyle 120\) Inventory, No. \(\displaystyle 201\) Accounts Payable, No. \(\displaystyle 401\) Sales Revenue, No. \(\displaystyle 412\) Sales Returns and Allowances, No. \(\displaystyle 414\) Sales Discounts, and No. \(\displaystyle 505\) Cost of Goods Sold.
Instructions
Journalize the transactions for the month of June for \(\displaystyle \text{Kern’s Book Warehouse}\) using a perpetual inventory system.
June
\(\displaystyle \bold{1}\) Purchased books on account for \(\displaystyle \$ 1,600\) from \(\displaystyle \text{Binsfeld Publishers}\), FOB destination, terms \(\displaystyle 2/10, n/30\). The appropriate party also made a cash payment of \(\displaystyle \$ 50\) for the freight on this date.
\(\displaystyle \bold{3}\) Sold books on account to \(\displaystyle \text{Reading Rainbow}\) for \(\displaystyle \$ 2,500\). The cost of the books sold was \(\displaystyle \$ 1,440\).
\(\displaystyle \bold{6}\) Received \(\displaystyle \$ 100\) credit for books returned to \(\displaystyle \text{Binsfeld Publishers}\).
\(\displaystyle \bold{9}\) Paid \(\displaystyle \text{Binsfeld Publishers}\) in full, less discount.
\(\displaystyle \bold{15}\) Received payment in full from \(\displaystyle \text{Reading Rainbow}\).
\(\displaystyle \bold{17}\) Sold books on account to \(\displaystyle \text{Rapp Books}\) for \(\displaystyle \$ 1,800\). The cost of the books sold was \(\displaystyle \$ 1,080\).
\(\displaystyle \bold{20}\) Purchased books on account for \(\displaystyle \$ 1,800\) from \(\displaystyle \text{McGinn Publishers}\), FOB destination, terms \(\displaystyle 2/15, n/30\). The appropriate party also made a cash payment of \(\displaystyle \$ 60\) for the freight on this date.
\(\displaystyle \bold{24}\) Received payment in full from \(\displaystyle \text{Rapp Books}\).
\(\displaystyle \bold{26}\) Paid \(\displaystyle \text{McGinn Publishers}\) in full, less discount.
\(\displaystyle \bold{28}\) Sold books on account to \(\displaystyle \text{Baeten Bookstore}\) for \(\displaystyle \$ 1,600\). The cost of the books sold was \(\displaystyle \$ 970\).
\(\displaystyle \bold{30}\) Granted \(\displaystyle \text{Baeten Bookstore}\) \(\displaystyle \$ 120\) credit for books returned costing \(\displaystyle \$ 72\).
\(\displaystyle \text{Kern’s Book Warehouse’s}\) chart of accounts includes the following: No. \(\displaystyle 101\) Cash, No. \(\displaystyle 112\) Accounts Receivable, No. \(\displaystyle 120\) Inventory, No. \(\displaystyle 201\) Accounts Payable, No. \(\displaystyle 401\) Sales Revenue, No. \(\displaystyle 412\) Sales Returns and Allowances, No. \(\displaystyle 414\) Sales Discounts, and No. \(\displaystyle 505\) Cost of Goods Sold.
Instructions
Journalize the transactions for the month of June for \(\displaystyle \text{Kern’s Book Warehouse}\) using a perpetual inventory system.
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