Sheffield Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Sheffield's inventory consists of 230 books purchased at $17 each. Sheffield uses a perpetual inventory system. Return rates in the book industry are high, with Sheffield experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 Purchased 160 books on account for $15 each from Reader's World Publishers, terms n/45. 3 Sold 220 books on account to The Book Nook for $25 each, with an assumed average cost of $16, terms n/45. Received a $150 credit for 10 books returned to Reader's World Publishers. 8 Sold 81 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $16, terms n/45. Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. 11 Purchased 130 books on account for $16 each from Read More Publishers, terms n/45. 12 Received payment in full from The Book Nook. 17 Received payment in full from Read-A-Lot Bookstore. 22 Sold 125 books on account to Reader's Bookstore for $23 each, with an assumed average cost of $16, terms n/45. 25 Granted Reader's Bookstore a $322 credit for 14 returned books. These books were restored to inventory. 29 Paid Reader's World Publishers in full. When Sheffield counted its inventory on June 30, it determined that there were 120 books with a total cost of $1,385. Record the adjusting entry for the inventory theft or shrinkage. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit June 30
Sheffield Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Sheffield's inventory consists of 230 books purchased at $17 each. Sheffield uses a perpetual inventory system. Return rates in the book industry are high, with Sheffield experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 Purchased 160 books on account for $15 each from Reader's World Publishers, terms n/45. 3 Sold 220 books on account to The Book Nook for $25 each, with an assumed average cost of $16, terms n/45. Received a $150 credit for 10 books returned to Reader's World Publishers. 8 Sold 81 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $16, terms n/45. Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. 11 Purchased 130 books on account for $16 each from Read More Publishers, terms n/45. 12 Received payment in full from The Book Nook. 17 Received payment in full from Read-A-Lot Bookstore. 22 Sold 125 books on account to Reader's Bookstore for $23 each, with an assumed average cost of $16, terms n/45. 25 Granted Reader's Bookstore a $322 credit for 14 returned books. These books were restored to inventory. 29 Paid Reader's World Publishers in full. When Sheffield counted its inventory on June 30, it determined that there were 120 books with a total cost of $1,385. Record the adjusting entry for the inventory theft or shrinkage. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit June 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheffield Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Sheffield's inventory consists of 230
books purchased at $17 each. Sheffield uses a perpetual inventory system. Return rates in the book industry are high, with Sheffield
experiencing a 15% return rate historically.
During the month of June, the following merchandise transactions occurred:
June
1
Purchased 160 books on account for $15 each from Reader's World Publishers, terms n/45.
3
Sold 220 books on account to The Book Nook for $25 each, with an assumed average cost of $16, terms n/45.
Received a $150 credit for 10 books returned to Reader's World Publishers.
8
Sold 81 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $16, terms n/45.
Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were
determined to be no longer saleable and were destroyed.
11
Purchased 130 books on account for $16 each from Read More Publishers, terms n/45.
12
Received payment in full from The Book Nook.
17
Received payment in full from Read-A-Lot Bookstore.
22
Sold 125 books on account to Reader's Bookstore for $23 each, with an assumed average cost of $16, terms n/45.
25
Granted Reader's Bookstore a $322 credit for 14 returned books. These books were restored to inventory.
29
Paid Reader's World Publishers in full.
When Sheffield counted its inventory on June 30, it determined that there were 120 books with a total cost of $1,385. Record the
adjusting entry for the inventory theft or shrinkage. (List all debit entries before credit entries. Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for
the amounts.)
Date Account Titles and Explanation
Debit
Credit
June 30
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