Question

The Williams Company sells a product called Mix-Right for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of Mix-Rights and transactions during October 2020 were as follows:

Oct		1	Balance: 104 units costing $5 each.
		3	Purchased 119 units from Arnold Brothers costing $7.50 each
		4	Returned 39 of the units purchased on October 3.
		9	Sold 94 units to Kitchen Club, invoice #210.
		15	Purchased 219 units from Arnold Brothers costing $8.70 each.
		18	Sold 188 units to Thorhild Co-op, invoice #211.
		19	Paid for the October 3 purchase; cheque #101.
		23	Paid for the October 15 purchase, cheque #102.
		24	Sold 69 units to Boyle Grocery, invoice #212.
		31	Purchased 94 units from Arnold Brothers costing $8.00 each.

Required:
Journalize the October transactions in the sales, purchases, and cash disbursements journals. Assume all sales and purchases are on credit; terms 2/10, n/30. Under the assumption that the company keeps its records on a weighted average basis, enter the beginning balances and post each transaction on an inventory subledger record. Posting to other subledgers is not required. (Enter the transactions in the order provided in the question. Round final answers to 2 decimal places.)

Answer 1

Journal Entries are as follows:

Date	Account and Explanation	Debit($)	Credit($)
Oct.1	No entry is required	-	-
Oct.3	Purchase (119 units * $7.50)	892.50
	Account Payable - Arnold Brothers		892.50
	(Recorded the Purchase of goods)
Oct.4	Account Payable - Arnold Brothers (39 units * $7.50)	292.50
	Purchase Return		292.50
	(Recorded the purchase return of goods)
Oct. 9	Account Receivable - Kitchen Club (94 units * $15 )	1,410
	Sale		1,410
	(Recorded the sale of goods )
Oct. 15	Purchase (219 units * $8.70 )	1,905.30
	Account Payable - Arnold Brothers		1,905.30
	(Recorded the Purchase of goods)
Oct. 18	Account Receivable -Thorhild Co-op (188 units * $15 )	2,820
	Sale		2,820
	( Recorded the sale of goods )
Oct. 19	Account Payable - Arnold Brothers ($892.50 - $292.50 )	600
	Bank		600
	(Recorded the payment of purchases)
Oct. 23	Account Payable - Arnold Brothers	1,905.30
	Bank		1,867.19
	Discount ($1,905.30 * 2%)		38.11
	(Recorded the payment of purchase and received a discount made within 10 days)
Oct. 24	Account Receivable - Boyle Grocery (69 units * $15 )	1,035
	Sale		1,035
	(Recorded the Sale of goods on Credit )
Oct. 31	Purchase (94 units * $8 )	752
	Account Payable - Arnold Brothers		752
	(Recorded the purchase of goods on credit)