SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. SOUND CORE began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the “TOZO T6" earbuds: 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 8 October 31 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. December 4 Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. December 10 December 30 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the store room. December 31 Unless otherwise stated, assume that all purchases were on account and received on the dates stated.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Journalize the transactions for the month of October, assuming the company uses a:
- Periodic inventory system
- Perpetual inventory system

SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of
Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of
earbuds. SOUND CORE began the last quarter (October to December) of 2021 with 30 cases of the (TOZO
T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions
relating to the “TOZO T6" earbuds:
98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight
charge of $248 cash on each case to have the inventory shipped from the point of
purchase to their place of business.
October 8
The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of
these cases were sold on account to three longstanding customers)
October 31
November 4
A new batch of 67 cases was purchased at a total cost of $465,650
November 10
5 of the cases purchased on November 4 were returned to the supplier, as they were not of
the type nor model ordered.
November 30
During the month 60 cases were sold at a price of $10,350 each.
A customer, to whom 9 cases were sold during the first business day of November,
returned 3 of the cases, as they were of another make and model.
December 4
Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900
each; these were subject to a trade discount of 2% each.
December 10
December 30
121 cases were sold during December at a unit selling price of $11,085.
An actual count of inventory was carried out which revealed that there were 34 cases of
the "TOZO T6" brand of merchandise in the store room.
December 31
Unless otherwise stated, assume that all purchases were on account and received on the dates stated.
Transcribed Image Text:SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. SOUND CORE began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the “TOZO T6" earbuds: 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 8 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) October 31 November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. December 4 Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. December 10 December 30 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the store room. December 31 Unless otherwise stated, assume that all purchases were on account and received on the dates stated.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 6 images

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education