Exercise 5-2 Assume that on September 1, Office Depot had an inventory that incl
ID: 2425739 • Letter: E
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. Purchased calculators from Dragoo Co. at a total cost of $1,760, terms n/30. Paid freight of $50 on calculators purchased from Dragoo Co. Returned calculators to Dragoo Co. for $67 credit because they did not meet specifications. Sold calculators costing $520 for $680 to Fryer Book Store, terms n/30. Granted credit of $40 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $29. Sold calculators costing $680 for $900 to Heasley Card Shop, terms n/30 Sept. 6 9 10 12 14 20 Journalize the September transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) DateAccount Titles and Explanation Debit CreditExplanation / Answer
Date
Account titles and explanation
Debit
Credit
Sept6
Purchase
1760
Dragoo co.
1760
Sept 9
Freight
50
Cash
50
Sept 10
Dragoo co.
67
Purchase return
67
Sept 12
Fryer book store (Account receivable )
680
Cost of goods sold
520
Revenue (sale)
680
Inventory
520
Sept 14
Sales return
40
Inventory
29
Cost of goods sold
29
Fryer book store
40
Sept 20
Heasley card shop
900
Cost of goods sold
680
Revenue (sale)
900
Inventory
680
Date
Account titles and explanation
Debit
Credit
Sept6
Purchase
1760
Dragoo co.
1760
Sept 9
Freight
50
Cash
50
Sept 10
Dragoo co.
67
Purchase return
67
Sept 12
Fryer book store (Account receivable )
680
Cost of goods sold
520
Revenue (sale)
680
Inventory
520
Sept 14
Sales return
40
Inventory
29
Cost of goods sold
29
Fryer book store
40
Sept 20
Heasley card shop
900
Cost of goods sold
680
Revenue (sale)
900
Inventory
680