Question

Sunland 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 $2,250 (including freight) from Catlin Publishers, terms 2/10, n/30.
3		Sold books on account to Garfunkel Bookstore for $1,500. The cost of the merchandise sold was $750.
6		Received $50 credit for books returned to Catlin Publishers.
9		Paid Catlin Publishers in full.
15		Received payment in full from Garfunkel Bookstore.
17		Sold books on account to Bell Tower for $1,400. The cost of the merchandise sold was $900.
20		Purchased books on account for $700 from Priceless Book Publishers, terms 1/15, n/30.
24		Received payment in full from Bell Tower.
26		Paid Priceless Book Publishers in full.
28		Sold books on account to General Bookstore for $2,850. The cost of the merchandise sold was $750.
30		Granted General Bookstore $150 credit for books returned costing $45.

Journalize the transactions for the month of June for Sunland Warehouse, using a perpetual inventory system.

Answer 1

Date	Account Titles	Debit	Credit
June 1	Merchandise inventory	$2250
	Accounts payable		$2250
June 3	Accounts receivable	$1500
	Sales		$1500
	Cost of Goods sold	$750
	Merchandise inventory		$750
June 6	Accounts payable	$50
	Merchandise inventory		$50
June 9	Accounts payable ($2250 - $50)	$2200
	Cash		$2156
	Merchandise inventory ($2200 * 2%)		$44
June 15	Cash	$1500
	Account Receivable		$1500
June 17	Account Receivable	$1400
	Sales		$1400
	Cost of Goods sold	$900
	Merchandise inventory		$900
June 20	Merchandise inventory	$700
	Accounts payable		$700
June 24	Cash	$1372
	Sales Discount ($1400 * 2%)	$28
	Account Receivable		$1400
June 26	Accounts payable	$700
	Cash		$693
	Merchandise inventory ($700 * 1%)		$7
June 28	Account Receivable	$2850
	Sales		$2850
	Cost of Goods sold	$750
	Merchandise inventory		$750
June 30	Sales return and allowances	$150
	Account Receivable		$150
	Merchandise inventory	$45
	Cost of Goods sold		$45