In: Accounting
On September 1, Duffs Beer Distributor had an inventory of 60 cases of beer at a cost of $21 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept 6 Purchased 75 cases at $20 each from Iron City Brewers, terms 2/10, n/30. Sept 9 Paid freight of $75 on the cases purchased from Iron City Brewers. Sept 10 Returned 2 cases to Iron City Brewers for $40 credit because they did not meet specifications. They had a “skunky” smell. Sept 11 Paid Iron City Brewers what was owed from the Sept 6th purchase. Sept 12 Sold 41 cases costing $21 each for $34 each to the Drunken Clam, terms 2/10,n/30. Sept 14 Granted credit of $34 to the Drunken Clam for the return of one case that was not ordered. Sept 21 Received payment in full from the Drunken Clam. Prepare journal entries IN GOOD FORM for the September transactions. Include Sales and cost of goods sold entries if applicable.