Assume that on September 1, Office Depot had an inventory that included a variet
ID: 2367391 • Letter: A
Question
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. 6 Purchased calculators from Abacus Co. at a total cost of $1,650, terms n/30. 9 Paid freight of $50 on calculators purchased from Abacus Co. 10 Returned calculators to Abacus Co. for $66 credit because they did not meet specifications. 12 Sold calculators costing $520 for $690 to Union Book Store, terms n/30. 14 Granted credit of $45 to Union Book Store for the return of one calculator that was not ordered. The calculator cost $34. 20 Sold calculators costing $570 for $760 to Commons Card Shop, terms n/30.Explanation / Answer
Sept 6
Debit Inventory $1,620
Credit Accounts Payable $1,620
Sept 9
Debit Inventory $50
Credit Cash $50
Sept 10
Debit Accounts Payable $38
Credit Inventory $38
Sept 12
Debit Accounts Receivable $690
Credit Sales $690
Sept 12
Debit Cost of Goods Sold $520
Credit Inventory $520
Sept 14
Debit Sales Returns and Allowances $45
Credit Accounts Receivable $45
Sept 14
Debit Cost of Goods Sold $34
Credit Inventory $34
Sept 20
Debit Accounts Receivable $760
Credit Sales $760
Sept 20
Debit Cost of Goods Sold $570
Credit Inventory $570