Question

Exercise 5-2 Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. Purchased calculators from Dragoo Co. at a total cost of $1,620, terms n/30. 9 Paid freight of $50 on calculators purchased from Dragoo Co 10 Returned calculators to Dragoo Co. for $59 credit because they did not meet specifications. 12 Sold calculators costing $470 for $720 to Fryer Book Store, terms n/30. 14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $31. Sold calculators costing $530 for $770 to Heasley Card Shop, terms n/30. 20 Journalize the September transactions. (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

6-Sep	Inventory	1620
	Accounts Payable		1620
9-Sep	Inventory	50
	Cash		50
10-Sep	Accounts Payable	59
	Inventory		59
12-Sep	Accounts Receivable	720
	Sales Revenue		720
	Cost of Goods Sold	470
	Inventory		470
14-Sep	Sales Returns and Allowances	45
	Accounts Receivable		45
	Inventory	31
	Cost of Goods Sold		31
20-Sep	Accounts Receivable	770
	Sales Revenue		770
	Cost of Goods Sold	530
	Inventory		530