Question

Oriole 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 $1,165 (including freight) from Catlin Publishers, terms 2/10, n/30.
3		Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $750.
6		Received $65 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 $2,000. The cost of the merchandise sold was $900.
20		Purchased books on account for $900 from Priceless Book Publishers, terms 2/15, 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 $1,300. The cost of the merchandise sold was $910.
30		Granted General Bookstore $270 credit for books returned costing $85.

Journalize the transactions for the month of June for Oriole Warehouse, using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Date	Accounts title and explaination	Debit	Credit
1-Jun	Inventory	$     1,165
	accounts payable		$     1,165
	(To record purchased books on account)
3-Jun	Accounts receivable	$     1,200
	sales revenue		$     1,200
	(To record credit sales recorded)
	Cost of goods sold	$        750
	Inventory		$        750
	(To record cost of merchandise sold recorded)
6-Jun	Accounts payable	$          65
	Inventory		$          65
	(To record received 65 credit as books returned)
9-Jun	Accounts payable (1165-65)	$     1,100
	Purchase Discount		$          22
	Cash (1100*98%)		$     1,078
	(To record payment fully paid at discount)
15-Jun	Cash	$     1,200
	accounts receivable		$     1,200
	(To record received payment)
17-Jun	Accounts receivable	$     2,000
	sales revenue		$     2,000
	(To record credit sales recorded)
	Cost of goods sold	$        900
	Inventory		$        900
	(To record cost of merchandise sold recorded)
20-Jun	Inventory	$        900
	accounts payable		$        900
	(To record purchases made on account)
24-Jun	Cash	$     2,000
	accounts receivable		$     2,000
	(To record received payment)
26-Jun	Accounts payable	$        900
	Inventory		$          18
	cash (900*98%)		$        882
	(To record payment paid less discount)
28-Jun	Accounts receivable	$     1,300
	sales revenue		$     1,300
	(To record credit sales recorded)
	Cost of goods sold	$        910
	Inventory		$        910
	(To record cost of merchandise sold recorded)
30-Jun	Sales returns and allowances	$        270
	accounts receivable		$        270
	(To record sales returns recorded)
	Inventory	$          85
	cost of goods sold		$          85
	(To record cost of merchandise returned recorded)