Exercise 6-19 Record inventory purchases and sales using a periodic system (LO6-

Question

Exercise 6-19 Record inventory purchases and sales using a periodic system (LO6-8) The following information applies to the questions displayed belowJ DS Unlimited has the following transactions during August. August 6 Purchases 70 handheld game devices on account from GameGirl, Inc., for $200 each, terms 1/10, n/60 August 7 Pays $400 to Sure Shipping for freight charges associated with the August 6 purchase August 10 Returns to GameGirl six game devices that were defective August 14 Pays the full amount due to GameGirl. August 23 Sells 50 game devices purchased on August 6 for $220 each to customers on account. The total cost of the 50 game devices sold is $10,212.50

Explanation / Answer

1. In the books of DS Unlimited:

2.

Date General Journal Debit Credit $ $ Aug 6 Purchases 14,000 Accounts Payable 14,000 Aug 7 Freight-in 400 Cash 400 Aug 10 Accounts Payable 1,200 Purchase Returns and Allowances 1,200 Aug 14 Accounts Payable 12,800 Purchase Discounts 128 Cash 12,672 Aug 23 Accounts Receivable 11,000 Sales 11,000

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