Respuesta :
Answer:
Carla Vista Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,755 (including freight) from Catlin Publishers, terms 2/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $850. 6 Received $55 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $1,550. The cost of the merchandise sold was $850. 20 Purchased books on account for $900 from Priceless Book Publishers, terms 3/15, n/30. 24 Received payment in full from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $2,650. The cost of the merchandise sold was $950. 30 Granted General Bookstore $210 credit for books returned costing $30.
Journalize the transactions for the month of June for Carla Vista Warehouse, using a perpetual inventory system.
Solution:
Carla Vista Warehouse
Journal Entries
June 1:
Debit Inventory Account with $1,755
Credit Accounts Payable (Catlin Publishers) with $1,755
To record purchase on account, terms 2/10, n/30.
June 3:
Debit Accounts Receivable (Garfunkel Bookstore) with $1,200
Credit Sales with $,1200
To record sale of books on account.
Debit Cost of Goods Sold with $850
Credit Inventory Account with $850
To record cost of goods sold.
June 6:
Debit Accounts Payable (Catlin Publishers) with $55
Credit Inventory Account with $55
To record return of goods.
June 9:
Debit Accounts Payable (Catlin Publishers) with $1,700
Credit Cash Account with $1,666
Credit Cash Discount with $34
To record full settlement on account.
June 15:
Debit Cash with $1,200
Credit Accounts Receivable (Garfunkel Bookstore) with $1,200
To record full settlement on account, no discount.
June 17:
Debit Accounts Receivable (Bell Tower) with $1,550
Credit Sales with $1,550
To record sale of books on account.
Debit Cost of Goods Sold with $850
Credit Inventory Account with $850
To record cost of goods sold.
June 20:
Debit Inventory Account with $900
Credit Accounts Payable (Priceless Book Publishers) with $900
To record purchase on account, terms 3/15, n/30.
June 24:
Debit Cash Account with $1,519
Debit Cash Discount with $31
Credit Accounts Receivable (Bell Tower) with $1,550
To record full settlement on account.
June 26:
Debit Accounts Payable (Priceless Book Publishers) with $900
Credit Cash Discount with $27
Credit Cash Account with $873
To record full settlement on account.
June 28:
Debit Accounts Receivable (General Bookstore) with $2,650
Credit Sales with $2,650
To record sale of books on account.
Debit Cost of Goods Sold with $950
Credit Inventory Account with $950
To record cost of goods sold.
June 30:
Debit Sales Account with $210
Credit Accounts Receivable (General Bookstore) with $210
To record books returned.
Debit Inventory with $30
Credit Cost of Goods Sold with $30
To record cost of goods returned.
Explanation:
a) Sales terms of 2/10, n/30 means that all credit sales are granted a cash discount of 2% if payment is received within 10 days and the credit period is for 30 days, beyond which interest will be accrued. Â The customer must pay within 30 days, within 10 days to take advantage of the 2% discount.
b) On June 15, Garfunkel Bookstore could not benefit from the discount window since it did not pay within 10 days. Â It therefore lost 2% or $24 for paying three days later.
c) Under the perpetual inventory system, inventory movements are reflected in the accounts immediately. Â Inventory is tracked continuously. Â It is unlike the periodic inventory system where physical count had to be undertaken before records are made in the books. Â The perpetual inventory system is more efficient and technology-friendly than the periodic system.
