June 3 Purchased goods for $5,900 from Diamond Inc. with torms 3/10, n/30. 5 Ret
ID: 2395325 • Letter: J
Question
June 3 Purchased goods for $5,900 from Diamond Inc. with torms 3/10, n/30. 5 Retumed goods costing $2,000 to Diamond Inc. for full credit 6 Purchased goods from Club Corp. for $1,900 with terms 3/10, n/30. 11 Paid the balance owed to Diamond Inc 22 Paid Club Corp. in full. Required: 1. Prepare journal entries to record the transactions, assuming Ace uses a perpetual inventory system. (f is required for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1June 03 Inventory 5,900 Accounts Payable 5,900 2June 05 Accounts Payable 2,000 Inventory 2,000 3June 06 Inventory 1,900 Accounts Payable 1,900 4 June 11 Accounts Payable 3,900 Inventory Cash 3,783 5June 22 Accounts Payable 1,900 Cash 1,900 2. Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.) of lExplanation / Answer
Answer:
1
Prepare journal entries to record the transactions,
Date
Description
Debit $
Credit $
June
3
Inventory
5900
Accounts payable
5900
5
Accounts payable
2000
Inventory
2000
6
Inventory
1900
Accounts payable
1900
11
Accounts payable (5900-2000)
3900
Inventory(3900*3%)
117
Cash(3900-117)
3783
22
Accounts payable
1900
Cash
1900
Note:
Club Corp. was paid 16 days after the purchase (outside the discount period).
_________________________________________________________________
2
Cost of the inventory =$5683
Working notes
Calculation of the cost of the inventory
Purchases (5900+1900)
7800
Less: Purchase returns
-2000
Less: Purchase discount from Diamond
-117
Cost of inventory as of June
5683
Cost of the inventory =$5683
Date
Description
Debit $
Credit $
June
3
Inventory
5900
Accounts payable
5900
5
Accounts payable
2000
Inventory
2000
6
Inventory
1900
Accounts payable
1900
11
Accounts payable (5900-2000)
3900
Inventory(3900*3%)
117
Cash(3900-117)
3783
22
Accounts payable
1900
Cash
1900