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Required Journalize the transactions for Titu library, whrer they are using perpetual inventory system.

Required Journalize the transactions for Titu library, whrer they are using perpetual inventory system.

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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Question no 1 Titu Library distributes books to retail stores and credit terms of 2/15, n/30 to all of its customers. During June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,600 from Binsfeld Publishers, FOB shipping point, terms 3/7, n/30. The appropriate party also made a cash payment of $50 for the freight on this date. June 3 Sold books on account to Reading Rainbow for $2,500, FOB Destination. The cost of the books sold was $1,440. The appropriate party also made a cash payment of $50 for the freight on this date. June 6 Received $100 credit as an allowance for low quality books from Binsfeld Publishers. June 7 Granted $100 credit as an allowance for low quality books to Reading Rainbow. June 9 Paid Binsfeld Publishers in full. June15 Received payment in full from Reading Rainbow. 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. Required Journalize the transactions for Titu library, whrer they are using perpetual inventory system.
Transcribed Image Text:Question no 1 Titu Library distributes books to retail stores and credit terms of 2/15, n/30 to all of its customers. During June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,600 from Binsfeld Publishers, FOB shipping point, terms 3/7, n/30. The appropriate party also made a cash payment of $50 for the freight on this date. June 3 Sold books on account to Reading Rainbow for $2,500, FOB Destination. The cost of the books sold was $1,440. The appropriate party also made a cash payment of $50 for the freight on this date. June 6 Received $100 credit as an allowance for low quality books from Binsfeld Publishers. June 7 Granted $100 credit as an allowance for low quality books to Reading Rainbow. June 9 Paid Binsfeld Publishers in full. June15 Received payment in full from Reading Rainbow. 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. Required Journalize the transactions for Titu library, whrer they are using perpetual inventory system.
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