Review the following transactions for Birdy Birdhouses and record any required journal entries.Sep. 6Birdy Birdhouses purchases 52 birdhouses at $50 each with cash.Sep. 8Birdy Birdhouses purchases 90 birdhouses at $30 each on credit. Terms of the purchase are 2/10, n/30, invoice date September 8.Sep. 10Birdy discovers 10 of the birdhouses are damaged from the Sep. 6 purchase and returns them to the supplier for a full refund. Birdy also discovers that 9 of the birdhouses from the Sep. 8 purchase are painted the wrong color but keeps them since the supplier granted an allowance of $100.Sep. 18Birdy pays their account in full from the September 8 purchase, less any returns, allowances, and/or discounts.If an amount box does not require an entry, leave it blank. Assume the periodic inventory system is used.Sep.6Sep. 8Sep. 10 RefundSep. 10 AllowanceSep. 18 Review the following transactions for Birdy Birdhouses and record any required journal entries.Sep. 6Birdy Birdhouses purchases 52 birdhouses at $50 each with cash.Sep. 8Birdy Birdhouses purchases 90 birdhouses at $30 each on credit. Terms of the purchaseare 2/10, n/30, invoice date September 8.Sep. 10 Birdy discovers 10 of the birdhouses are damaged from the Sep. 6 purchase and returnsthem to the supplier for a full refund. Birdy also discovers that 9 of the birdhouses fromthe Sep. 8 purchase are painted the wrong color but keeps them since the suppliergranted an allowance of $100.Sep. 18 Birdy pays their account in full from the September 8 purchase, less any returns,allowances, and/or discounts.If an amount box does not require an entry, leave it blank. Assume the periodic inventory system is used.Sep. 6Sep. 8Sep. 10 RefundSep. 10 AllowanceSep. 18II II II 11 I00

Under periodic inventory system, Purchases account is debited for inventory purchase instead of Inventory account. Under periodic inventory system, Purchase Return and Allowances account is credited for purchase return instead of Inventory account. Account Titles and Explanation Debit Credit Calculation Sep. 6 Purchases $2,600 52*50 Cash $2,600 (To record cash purchase) Sep. 8 Purchases $2,700 90*30 Accounts Payable $2,700 (To record credit purchase) Sep. 10 Refund Cash $500 10*50 Purchase Return and Allowances $500 (To record purchase return) Sep. 10 Allowance Accounts Payable $100 Purchase Return and Allowances $100 (To record purchase allowance) Sep. 18 Accounts Payable $2,600 2700-100 Purchase Discounts $52 2600*2% Cash $2,548 2600*98% (To record payment on account) I have provided the explanations and calculations for your reference. They are not required in the original solution.

Answered: Review the following transactions for…

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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Review the following transactions for Birdy Birdhouses and record any required journal entries.

Sep. 6	Birdy Birdhouses purchases 52 birdhouses at $50 each with cash.
Sep. 8	Birdy Birdhouses purchases 90 birdhouses at $30 each on credit. Terms of the purchase are 2/10, n/30, invoice date September 8.
Sep. 10	Birdy discovers 10 of the birdhouses are damaged from the Sep. 6 purchase and returns them to the supplier for a full refund. Birdy also discovers that 9 of the birdhouses from the Sep. 8 purchase are painted the wrong color but keeps them since the supplier granted an allowance of $100.
Sep. 18	Birdy pays their account in full from the September 8 purchase, less any returns, allowances, and/or discounts.

If an amount box does not require an entry, leave it blank. Assume the periodic inventory system is used.

Sep.6

Sep. 8

Sep. 10 Refund

Sep. 10 Allowance

Sep. 18

Review the following transactions for Birdy Birdhouses and record any required journal entries.
Sep. 6
Birdy Birdhouses purchases 52 birdhouses at $50 each with cash.
Sep. 8
Birdy Birdhouses purchases 90 birdhouses at $30 each on credit. Terms of the purchase
are 2/10, n/30, invoice date September 8.
Sep. 10 Birdy discovers 10 of the birdhouses are damaged from the Sep. 6 purchase and returns
them to the supplier for a full refund. Birdy also discovers that 9 of the birdhouses from
the Sep. 8 purchase are painted the wrong color but keeps them since the supplier
granted an allowance of $100.
Sep. 18 Birdy pays their account in full from the September 8 purchase, less any returns,
allowances, and/or discounts.
If an amount box does not require an entry, leave it blank. Assume the periodic inventory system is used.
Sep. 6
Sep. 8
Sep. 10 Refund
Sep. 10 Allowance
Sep. 18
II II II 11 I00

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