DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Incorporated, for $240 each, terms 1/10, n/60. August 7 Pays $440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for $260 each to customers on account. The total cost of the 58 game devices sold is $14,145.00. Required: 1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system. 2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $2,927.
DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Incorporated, for $240 each, terms 1/10, n/60. August 7 Pays $440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for $260 each to customers on account. The total cost of the 58 game devices sold is $14,145.00. Required: 1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system. 2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $2,927.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:DS Unlimited has the following transactions during August.
August 6 Purchases 78 handheld game devices on account from GameGirl, Incorporated, for $240 each, terms 1/10, n/60.
August 7 Pays $440 to Sure Shipping for freight charges associated with the August 6 purchase.
August 10 Returns to GameGirl eight game devices that were defective.
August 14 Pays the full amount due to GameGirl.
August 23 Sells 58 game devices purchased on August 6 for $260 each to customers on account. The total cost of the 58 game devices
sold is $14,145.00.
Required:
1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system.
2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and
ending inventory has a cost of $2,927.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
3
4
5
6
Record purchase of 78 handheld game devices on account from GameGirl,
Incorporated, for $240 each, terms 1/10, n/60.
Note: Enter debits before credits.
Date
August 06
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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