Question

Powell's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10,n/30 to all of its customers. At the end of May, Powell's inventory consisted of books purchased for $1,800. During June, the following merchandising transactions occurred. June 1 3 6 9 15 17 Purchased books on account for $1.600 from Kline Publishers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date. Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440. Received $100 credit for books returned to Kline Publishers. Paid Kline Publishers in full, less discount. Received payment in full from Reading Rainbow. Sold books on account to Blanco Books for $1,800. The cost of the books sold was $1,080. Purchased books on account for $1,500 from Dietz Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $50 for the freight on this date. Received payment in full from Blanco Books. Paid Dietz Publishers in full, less discount. Sold books on account to Reddy Bookstore for $1,400. The cost of the books sold was $850. Granted Reddy Bookstore $120 credit for books returned costing $72. 20 24 26 28 30 Powell's Book Warehouse's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Journalize the transactions for the month of June for Powell's Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Tume ! Purchase Ale Do To sale are ( $100 (Bering Decont Alling Rainbow etc 8200 $1600 To kline Publisher 41600 (Being borke normased on concedit) Reading Rambwe are breason 8200 merry mroees sold on onedit) & kline publisher me B. &180 Retern outward books resorn to K. Publisher) & Bank Area Discount ate To kline probather #c O Kline seebitcher He B7 41500 1450 To Bank All To discount the (Bering Andant paid to &line Publisher) 15 Bank Ale or Bros To (Being Amount recened how Reading Rainbow 50

4 1470 (13 To Blanco Books are or 41800 To sales are $1800 (meing nervers sold to Blanco more) (oon Parchase Aich $100 To Dieta Publisher 41505 (Bering Adves purchased fowo Dietz Puthiers, Bank te or &1800 To Blanco movies are 41800 from Amount Genetik "Manco Boros) Dieta publisher om $0 To Bant de To Desesent are 1 30 (bene Amount paid to Dietz Pubsisar) Reddy Mookstore #7C BY 41403 $1400 (preing bootes sold to Heoldy Buopstone) o sales Return to $72 To Reddy Bookstore 872 being Books Gsetemned fronpeddy Pawla To sales tic