Question

On September 1, Roshek Office Supply had an inventory of 30 calculators at a cost of €22 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

Sept. 6 Purchased 90 calculators at €20 each from Harlow Co., terms 2/10, n/30.

9          Paid freight of €180 on calculators purchased from Harlow Co.

10        Returned 3 calculators to Harlow Co. for €66 credit (including freight) because they did not meet specifications.

12        Sold 26 calculators costing €22 (including freight) for €33 each to Village Book

Store, terms n/30.

14        Granted credit of €33 to Village Book Store for the return of one calculator that was not ordered.

20        Sold 40 calculators costing €22 for €32 each to Holiday Card Shop, terms n/30.

Instructions

Journalize the September transactions.

Date	A/c title	Dr	Cr
Sep 6
9
10
12
14
20

Answer 1

Date	Accounts Title	Debit	Credit
Sep 6	Merchandise Inventory	1,800		(90 X €20)
	Accounts Payable		1,800
Sep 9	Merchandise Inventory	180
	Cash		180
Sep 10	Accounts Payable	66
	Merchandise Inventory		66
Sep 12	Accounts Receivable	858		(26 X €33)
	Sales		858
	Cost of Goods Sold	572		(26 X €22)
	Merchandise Inventory		572
Sep 14	Sales Returns and Allowances	33
	Accounts Receivable		33
	Merchandise Inventory	22
	Cost of Goods Sold		22
Sep 20	Accounts Receivable	1,280		(40 X €32)
	Sales		1,280
	Cost of Goods Sold	880		(40 X €22)
	Merchandise Inventory		880