Hello,Besides the first entry, I'm not sure how to record these transactions for a perpetual inventory systemthanks DateAccount Titles and Explanation(To record credit sale)(To record cost of merchandise sold)(To record return of goods)(To record cost of merchandise returned)DebitDO COCredit On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 82 calculators at a cost of $20 each.The company uses a perpetual inventory system. During September, the following transactions occurred:Sept. 21011142930Purchased 615 calculators for $20 each from Digital Corp. on account, terms n/30.Returned 9 calculators to Digital for $180 credit because they did not meet specifications.Sold 220 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% basedon prior experience.Granted credit of $270 to Campus Book Store for the return of 9 calculators that were not ordered. Thecalculators were restored to inventory.Paid Digital the amount owing.Received payment in full from the Campus Book Store.

Answered: On September 1, the beginning of its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hello,

Besides the first entry, I'm not sure how to record these transactions for a perpetual inventory system

thanks

Date
Account Titles and Explanation
(To record credit sale)
(To record cost of merchandise sold)
(To record return of goods)
(To record cost of merchandise returned)
Debit
DO CO
Credit

On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 82 calculators at a cost of $20 each.
The company uses a perpetual inventory system. During September, the following transactions occurred:
Sept. 2
10
11
14
29
30
Purchased 615 calculators for $20 each from Digital Corp. on account, terms n/30.
Returned 9 calculators to Digital for $180 credit because they did not meet specifications.
Sold 220 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based
on prior experience.
Granted credit of $270 to Campus Book Store for the return of 9 calculators that were not ordered. The
calculators were restored to inventory.
Paid Digital the amount owing.
Received payment in full from the Campus Book Store.

Expert Solution

Step 1 Introduction

An economic event involving a third party that is documented in the accounting system of a company is referred to as a business transaction. A transaction of this kind has to be measured in terms of money. The purchase of insurance from an insurance provider is an example of a commercial transaction. purchasing goods from a provider of such goods.

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