Question

Problem 5-2A McCoy 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 $1,040 (including freight) from Carlin Publishers, terms 2/10, n/30. 3 Sold books on account to the Goldschmidt bookstore for $1,200. The cost of the merchandise sold was $720. 6 Received $40 credit for books returned to Carlin Publishers. 9 Paid Carlin Publishers in full. 15 Received payment in full from the Goldschmidt bookstore. 17 Sold books on account to Town Crier for $1,200. The cost of the merchandise sold was $730. 20 Purchased books on account for $720 from Good Book Publishers, terms 1/15, n/30. 24 Received payment in full from Town Crier. 26 Paid Good Book Publishers in full. 28 Sold books on account to Emporia Bookstore for $1,300. The cost of the merchandise sold was $780. 30 Granted Emporia Bookstore $130 credit for books returned costing $80. Journalize the transactions for the month of June for McCoy Warehouse, using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places e.g. 15,222.)

Answer 1

Date	General description	Debit	credit
Jun-01	Merchandise Inventory	1040
	Accounts Payable		1040
	(Purchased books on account)
Jun-03	Accounts receivable	1200
	Sale		1200
	(Record of sale)	r
	Cost of goods sold	720
	Merchandise inventory		720
	(To record the cost of inventory)
Jun-06	Accounts Payable	40
	Merchandise inventory		40
	(Received credit for books)
Jun-09	Accounts Payable	1000
	Cash		980
	Merchandise inventory (1000*2%)		20
	(Paid carlin publishers in full)
Jun-15	Cash	1200
	Accounts receivable		1200
	(Received payment in full)
Jun-17	Accounts receivable	1200
	Sales		12000
	(To record the sale)
	Cost of goods sold	730
	Merchandise inventory		730
	(To record the cost of inventory)
Jun-20	Merchandise inventory	720
	Accounts payable		720
	(Purchased books on account)
Jun-24	Cash	1176
	sales discount (1200*2%)	24
	Accounts Receivable		1200
	(Received payment in full from town crier)
Jun-26	Accounts Payable	720
	Cash		712.8
	Merchandise inventory (720*1%)		7.2
Jun-28	Accounts receivable	1300
	Sales		1300
	(To record sale)
	Cost of goods sold	780
	Merchandise inventory		780
	(To record the cost of inventory)
Jun-30	Sales returns and allowances	130
	Accounts receivable		130
	(To record the credit for returned mechandise)
	Merchandise inventory	80
	cost of goods sold		80