Question

On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 92 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred:

Sept.	2		Purchased 690 calculators for $20 each from Digital Corp. on account, terms n/30.
	10		Returned 14 calculators to Digital for $280 credit because they did not meet specifications.
	11		Sold 270 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience.
	14		Granted credit of $420 to Campus Book Store for the return of 14 calculators that were not ordered. The calculators were restored to inventory.
	29		Paid Digital the amount owing.
	30		Received payment in full from the Campus Book Store.

(a)

Record the September transactions. (List all debit entries before credit entries. 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.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title to record credit sale	enter a debit amount	enter a credit amount
	enter an account title to record credit sale	enter a debit amount	enter a credit amount
	enter an account title to record credit sale	enter a debit amount	enter a credit amount
	(To record credit sale)
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title to record cost of merchandise sold	enter a debit amount	enter a credit amount
	enter an account title to record cost of merchandise sold	enter a debit amount	enter a credit amount
	enter an account title to record cost of merchandise sold	enter a debit amount	enter a credit amount
	(To record cost of merchandise sold)
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title to record return of goods	enter a debit amount	enter a credit amount
	enter an account title to record return of goods	enter a debit amount	enter a credit amount
	(To record return of goods)
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title to record cost of merchandise returned	enter a debit amount	enter a credit amount
	enter an account title to record cost of merchandise returned	enter a debit amount	enter a credit amount
	(To record cost of merchandise returned)
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Sept. 2Sept. 10Sept. 11Sept. 14Sept. 29Sept. 30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Answer 1

JOURNAL ENTRIES

IN THE BOOKS OF CAMPUS OFFICE SUPPLY LTD.

PERPETUAL INVENTORY SYSTEM

Date	Account Details and Explanation	Debit ($)	Credit ($)
Sep 1	No Entry
Sep 2	Merchandise Inventory	13,800
	Account payable		13,800
	To record Purchase 690 calculators for $20 each on account, terms n/30
Sep 10	Account Payable	280
	Merchandise Inventory		280
	To record returned 14 calculators for $280 because they did not meet the specification
Sep 11	Account receivable	8,100
	Sales revenue		8,100
	To record sold 270 calculators for $30 each on account, term n/30
Sep 11	Cost of goods sold	5,400
	Merchandise Inventory		5,400
	To record cost of goods sold of 270 calculators for $20 each
Sep 14	Sales return	420
	Account receivable		420
	To record sales return to campus book store of 14 calculators for $30 each
Sep 14	Merchandise Inventory	280
	Cost of goods sold		280
	To record merchandise return to inventory of 14 calculators for $20 each
Sep 29	Account Payable	13,520
	Cash		13,520
	To record paid Digital the amount owing $13,800 - $280 = $13,520
Sep 30	Cash	7,680
	Account receivable		7,680
	To record received payment in full from Campus Book Store $8,100 - $420 = $7,680

Note: No entry made for estimation.

Hence there will be no entry for estimation made by management based on prior experience.

Thank you :)