Answered: Record journal entries in the order…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A....

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Crane’s Book Warehouse distributes hardcover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of May, Crane’s inventory consisted of books purchased for $1,500. During June, the following merchandising transactions occurred. June 1Purchased books on account for $1,400 from Binsfeld Publishers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date. 3Sold books on account to Reading Rainbow for $2,400. The cost of the books sold was $1,600. 6Received $150 credit for books returned to Binsfeld Publishers. 9Paid Binsfeld Publishers in full, less discount. 15Received payment in full from Reading Rainbow. 17Sold books on account to Rapp Books for $1,700. The cost of the books sold was $1,020. 20Purchased books on account for $1,700 from McGinn Publishers, FOB destination, terms 1/15, n/30. The appropriate party also made a cash payment of $60 for the freight on this date. 24Received payment in full from Rapp Books. 26Paid McGinn Publishers in full, less discount. 28Sold books on account to Baeten Bookstore for $1,300. The cost of the books sold was $970. 30Granted Baeten Bookstore $160 credit for books returned costing $96. Crane's Book Warehouse's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Journalize the transactions for the month of June for Crane’s Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date
Account Titles and Explanation
Debit
Credit
(To record credit sale)
(To record cost of merchandise sold)
(To record credit sale)
(To record cost of merchandise sold)

(To record credit sale)
(To record cost of merchandise sold)
(To record merchandise returned)
(To record cost of merchandise returned)

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