Question

Presented here are selected transactions for Alpine Tours Inc. during September of the current year. Alpine Tours uses a perpetual inventory system. Sept. 2 Purchased equipment on account for $71,000, terms n/30, FOB destination. 3 Freight charges of $1,040 were paid by the appropriate party on the September 2 purchase of equipment. 4 Purchased supplies for $3,600 cash. 6 Purchased inventory on account from Winterholt Company at a cost of $64,600, terms 1/15, n/30, FOB shipping point. 7 Freight charges of $1,600 were paid by the appropriate party on the September 6 inventory purchase. 8 Returned damaged goods costing $5,300 that were originally purchased from Winterholt Company on September 6. Received a credit on account. 9 Sold goods costing $14,400 to Fischer Limited for $20,300 on account, terms 2/10, n/30, FOB destination. 10 Freight charges of $380 were paid by the appropriate party on the September 9 sale of inventory. 17 Received the balance due from Fischer. 20 Paid Winterholt Company the balance due. 21 Purchased inventory for $6,500 cash. 22 Sold inventory costing $21,800 to Kun-Tai Inc. for $29,700 on account, terms n/30, FOB shipping point. 23 Freight charges of $600 were paid by the appropriate party on the September 22 sale of inventory. 28 Kun-Tai returned goods sold for $9,600 that cost $7,700. The merchandise was restored to inventory.

(a) Record the September transactions on Alpine Tours’s books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.)

Answer 1

The journal Entries are as follows:

Date	Account and Explanation	Debit($)	Credit($)
Sept.2	Equipment	71,000
	Account Payable		71,000
	( Recorded the purchase of equipment on account)
Sept.3	No Entry Required	-
			-
Sept.4	Supplies	3,600
	Cash		3,600
	(Supplies purchased for cash)
Sept.6	Inventory	64,600
	Account Payable(Winterholt Company)		64,600
	(Material purchased on account)
Sept.7	Inventory	1,600
	Cash		1,600
	(Freight charges paid added to purchase of inventory)
Sept.8	Account Payable(Winterholt Company)	5,300
	Inventory		5,300
	(Purchased goods returned)
Sept.9	Account Receiable(Fischer Limited)	20,300
	Sales Revenue		20,300
	(Goods sold on account)
Sept.9	Cost of Goods Sold	14,400
	Inventory		14,400
	(Cost of Goods Sold is recorded)
Sept.10	Freight Charges	380
	Cash		380
	(Freight Charges paid in cash)
Sept.17	Cash	19,894
	Discount	406
	Account Receiable(Fischer Limited)		20,300
	(Balance amount received and allowed a discount)
Sept.20	Account Payable(Winterholt Company)($64,600 - $5,300)	59,300
	Discount Recieved($59,300*1%)		5,930
	Cash		53,370
	(Payment made to account payable after the discount)
Sept.21	Inventory	6,500
	Cash		6,500
	(Inventory purchase for cash)
Sept.22	Account Receiable(Kun-Tai Inc.)	29,700
	Sales Revenue		29,700
	(goods sold on account)
Sept. 22	Cost of Goods Sold	21,800
	Inventory		21,800
	(Cost of Goods Sold is recorded)
Sept. 23	No entry Required	-	-
Sept. 28	Sales Return	9,600
	Account Receiable(Kun-Tai)		9,600
	(Goods is returned by the customer)
Sept. 28	Inventory	7,700
	Cost of Goods Sold		7,700
	( Cost of Goods Sold is returned)