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Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2022, there were 225 cartridges on hand that cost $62 each. During 2022, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a mid-year selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a perpetual inventory system. Required: 1. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but that no discounts were offered.

Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2022, there were 225 cartridges on hand that cost $62 each. During 2022, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a mid-year selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a perpetual inventory system. Required: 1. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but that no discounts were offered.

FINANCIAL ACCOUNTING
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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Recording Purchases and Sales Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2022, there were 225 cartridges on hand that cost $62 each. During 2022, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a mid-year selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a perpetual inventory system. Required: 1. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but that no discounts were offered. Record the entry for the purchases during the year. Inventory 91,450 Accounts Payable 91,450 (Purchased inventory on account) Record the entry for the return, by Printer Supply, of the cartridges to its supplier. Accounts Payable 930 Inventory 930 (Recorded return of defective cartridges to supplier)
Transcribed Image Text:Recording Purchases and Sales Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2022, there were 225 cartridges on hand that cost $62 each. During 2022, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a mid-year selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a perpetual inventory system. Required: 1. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but that no discounts were offered. Record the entry for the purchases during the year. Inventory 91,450 Accounts Payable 91,450 (Purchased inventory on account) Record the entry for the return, by Printer Supply, of the cartridges to its supplier. Accounts Payable 930 Inventory 930 (Recorded return of defective cartridges to supplier)
Record the entry for the sales during the year. Accounts Receivable 78,850 Sales Revenue 78,850 (Sold inventory on account) Record the entry for the cost of goods sold related to the sales during the year. Cost of Goods Sold 44,020 Inventory 44,020 (Recorded cost of inventory sold) Record the entry for the return, by customers, of the cartridges to Printer Supply. Sales Returns and Allowances 2,040 Accounts Receivable 2,040 (Recorded return of defective cartridges by customers) Inventory 1,240 Cost of goods sold 1,240 (Recorded return of defective cartridges by customers)
Transcribed Image Text:Record the entry for the sales during the year. Accounts Receivable 78,850 Sales Revenue 78,850 (Sold inventory on account) Record the entry for the cost of goods sold related to the sales during the year. Cost of Goods Sold 44,020 Inventory 44,020 (Recorded cost of inventory sold) Record the entry for the return, by customers, of the cartridges to Printer Supply. Sales Returns and Allowances 2,040 Accounts Receivable 2,040 (Recorded return of defective cartridges by customers) Inventory 1,240 Cost of goods sold 1,240 (Recorded return of defective cartridges by customers)
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