Exercise 5-2 Assume that on September 1, Office Depot had an inventory that incl
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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.)Explanation / Answer
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