Question

Question 6 At the beginning of June 2017, Blue Spruce Distributing Company's ledger showed Cash $19,000, Merchandise Inventory $4,100, and D. Blue Spruce, Capital, $23,100. During the month of June, the company had the following selected transactions: June 1 Purchased $9,000 of merchandise inventory from Sun Supply Co., terms 1/15, n/30, FOB destination 2 The correct company paid $210 cash for freight charges on the June 1 purchase. 5 Sold merchandise inventory to Moose Jaw Retailers for $13,000. The cost of the merchandise was $7,500 and the terms were 2/10, n/30, FOB destination 6 Issued a $950 credit for merchandise returned by Moose Jaw Retailers. The merchandise oriqinally cost $600 and was returned to inventory. 6 The correct company paid $280 freight on the June 5 sale. 7 Purchased $810 of supplies for cash 10 Purchased $3,750 of merchandise inventory from Fey Wholesalers, terms 2/10, n/30, FOB shipping point. 10 The correct company paid $120 freight costs on the purchase from Fey Wholesalers 12 Received a $250 credit from Fey Wholesalers for returned merchandise. 14 Paid Sun Supply Co. the amount due. 15 Collected the balance owing from Moose Jaw Retailers. 19 Sold merchandise for $7,100 cash. The cost of this merchandise was $4,400. 20 Paid Fey Wholesalers the balance owing from the June 10 purchase. 25 Made a $540 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $330. The merchandise was damaged and could not be resold. 30 Sold merchandise to Bauer & Company for $4,200, terms n/30, FOB shipping point. Blue Spruce's cost for this merchandise was $2,600. Record the transactions assuming Blue Spruce uses a perpetual inventory system. (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. Record journal entries in the order presented in the problem.)

Answer 1

Blue Spruce Distributing company
Journal entries June 2017
Date	Account Titles and explanations	Debit	Credit
Jun-01	Inventory	9,000
	Accounts Payable		9,000
	(Purchase of Inventory from Sun Supply co.)
Jun-02	Inventory	210
	Cash		210
	(Inbound frieght for the purchases made)
Jun-05	Cost of Goods Sold	7,500
	Inventory		7,500
	Accounts receivable	13,000
	Sales		13,000
	(Sale of merchandise to Moose Jaw retailer)
Jun-06	Inventory	600
	Cost of Goods sold		600
	Sales returns	950
	Accounts receivable		950
	(sales returns from Moose Jaw retailer)
Jun-07	Inventory	810
	Cash		810
	(cash purchase made)
Jun-10	Inventory	3,750
	Accounts Payable		3,750
	(Purchase of Inventory from Fey wholesalers)
Jun-10	Inventory	120
	Cash		120
	(Inbound frieght for the purchases made)
Jun-12	Accounts Payable	250
	Inventory		250
	(Purchase returns made)
Jun-14	Accounts Payable	9,000
	Inventory		90
	Cash		8,910
	(Paid to Sun supply co. before due date, so 1% credit received)
Jun-15	Cash	11,809
	Discount Given	241
	(13000-950)*2%
	Accounts receivable		12,050
	(Received from Moose Jaw retailers and 2% rebate given as payment received before due date
Jun-19	Cost of Goods Sold	4,400
	Inventory		4,400
	Cash	7,100
	Sales		7,100
	(Cash sales made)
Jun-20	Accounts Payable	3,750
	Inventory		75
	Cash		3,675
	(Paid to Fey wholesales before due date, so 2% credit received)
Jun-25	Sales returns	450
	Cash		450
	(Cash sales returns, no inventory entry posted as inventory is not in usable condition)
Jun-30	Cost of Goods Sold	2,600
	Inventory		2,600
	Account receivable	4,200
	Sales		4,200
	(Sale of merchandise to Blue Spruce's)

Merchandise Inventory
Date	Explanation	Debit	Credit	Balance
Jun-01	Opening Balance	4,100		4,100
Jun-01	Purchase	9,000		13,100
Jun-02	Purchase (Frieght)	210		13,310
Jun-05	Move to COGS (Sale)		7,500	5,810
Jun-06	From COGS (Sale return)	600		6,410
Jun-07	Cash purchse	810		7,220
Jun-10	Purchase	3,750		10,970
Jun-10	Purchase (Frieght)	120		11,090
Jun-12	Purchase return		250	10,840
Jun-14	Purchase discount		90	10,750
Jun-19	Move to COGS (Sale)		4,400	6,350
Jun-20	Purchase discount		75	6,275
Jun-30	Move to COGS (Sale)		2,600	3,675

Sales
Date	Explanation	Debit	Credit	Balance
Jun-05	Moose Jaw retailer		13,000	-13,000
Jun-30	Blue Spruce		4,200	-17,200

Sales returns and allowances
Date	Explanation	Debit	Credit	Balance
Jun-06	Moose Jaw retailer	950		950
Jun-19	Cash sale	7,100		8,050

Sales Discount
Date	Explanation	Debit	Credit	Balance
Jun-15	Moose Jaw retailer	241		241
Jun-25	cash sale return	450		691

Cost of Goods sold
Date	Explanation	Debit	Credit	Balance
Jun-05	Sale	7,500		7,500
Jun-06	Sale return		600	6,900
Jun-19	Sale	4,400		11,300
Jun-30	Sale	2,600		13,900