Question

1. Carter Company purchases and resells various electronics to consumers. Listed below are the transactions for the month of September. Carter has a beginning inventory balance of $5,900 at September 1. Sep 1 Purchased $11,000 of merchandise inventory; terms 1/15, n/30. 7 Purchased for cash $9,900 of merchandise inventory. 9 Contacted a major supplier to place an order for $55,000 to be shipped on October 31. 10 Purchased $16,500 of merchandise inventory; terms 2/15, n/45. 11 Purchased $2,700 of office supplies; terms n/15. 15 Paid for the merchandise purchased on September 1. 18 Paid for the office supplies purchased on September 11. Oct 20 Paid for the September 10 purchase. Instructions a) Journalize transactions using the perpetual inventory system. b) Determine the balance of the Inventory account at September 30.

Answer 1

Requirement:1

Date	Account Titles and Explanation	Debit	Credit
Sep. 1	Inventory	$        11,000
	Account Payable		$ 11,000
	(To record inventory purchased on account)
Sep. 7	Inventory	$          9,900
	Cash		$    9,900
	(To record inventory purchased)
Sep. 9	No Entry Required	$                 -
			$           -
Sep. 10	Inventory	$        16,500
	Account Payable		$ 16,500
	(To record inventory purchased on account)
Sep. 11	Office Supplies	$          2,700
	Account Payable		$    2,700
	(To record supplies purchased on account)
Sep. 15	Account Payable	$        11,000
	Inventory ( 11000*1/100 )		$        110
	Cash		$ 10,890
	( To record account payable paid)
Sep. 18	Account Payable	$          2,700
	Cash		$    2,700
	( To record account payable paid)
Oct. 20	Account Payable	$        16,500
	Cash		$ 16,500
	( To record account payable paid)

Requirement:2

Inventory Balance on September 30
Beginning Balance	$          5,900
Add: Purchases [11000+9900+16500]	$        37,400
Less: Discounts	$           (110)
Balance.	$        43,190