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    Class Work Chapter 5 Part A

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    aura fitrah auliya Somantri
    The document describes inventory transactions for Nixa Office Supply in September. It began with 30 calculators costing $18 each in perpetual inventory. Transactions included purchasing 90 calculators for $22 each, returning some, selling some to customers, and granting a return/credit to a customer. Journal entries were provided to record the inventory and sales transactions for the period.

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    Class Work Chapter 5 Part A

    Uploaded by

    aura fitrah auliya Somantri
    27 views2 pages
    The document describes inventory transactions for Nixa Office Supply in September. It began with 30 calculators costing $18 each in perpetual inventory. Transactions included purchasing 90 calculators for $22 each, returning some, selling some to customers, and granting a return/credit to a customer. Journal entries were provided to record the inventory and sales transactions for the period.

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    The document describes inventory transactions for Nixa Office Supply in September. It began with 30 calculators costing $18 each in perpetual inventory. Transactions included purchasing 90 calculators for $22 each, returning some, selling some to customers, and granting a return/credit to a customer. Journal entries were provided to record the inventory and sales transactions for the period.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views2 pages

    Class Work Chapter 5 Part A

    Uploaded by

    aura fitrah auliya Somantri
    The document describes inventory transactions for Nixa Office Supply in September. It began with 30 calculators costing $18 each in perpetual inventory. Transactions included purchasing 90 calculators for $22 each, returning some, selling some to customers, and granting a return/credit to a customer. Journal entries were provided to record the inventory and sales transactions for the period.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    E5-3 On September 1, Nixa Office Supply had an

    inventory of 30 calculators at a cost of $18 each. The


    company uses a perpetual inventory system. During
    September, the following transactions occurred.
    Before you are journalizing inventory transactions,
    you have to find out for whom you are recording
    the transaction and we also need to find out what
    inventory system they are following.
    Sept. 6 Purchased 90 calculators at $22 each from York,
    terms net/30.
    Inventory will be debited by 90x22=1,980 and accounts payable will be
    credited by 1980.
    9 Paid freight of $90 on calculators purchased from
    York Co.
    Company paid the freight cost as the buyer. As the buyer we have to debit our
    inventory by 90, and cash will be credited by 90.
    10 Returned 3 calculators to York Co. for $69 credit
    (including freight) because they did not meet
    specifications.
    This is a purchase return. For purchase return, accounts payable will be
    debited, and inventory will be credited.
    12 Sold 26 calculators costing $23 (including
    freight) for $31 each to Sura Book Store, terms n/30.
    For sales, journal entry should be, accounts receivable debited, and sales
    revenue credited by selling price at $31 x $26 = 806. Then costs of goods
    sold will be debited by 26 x 23 = 598, and inventory credited by 598.
    14 Granted credit of $31 to Sura Book Store for the
    return of one calculator that was not ordered.
    Sales return and allowance will be debited, and accounts receivable will be
    credited, both by 31. Inventory will be debited by 23 and cost of goods sold
    will be credited by 23.
    20 Sold 30 calculators costing $23 for $32 each to
    Davis Card Shop, terms n/30.

    This study source was downloaded by 100000863287996 from CourseHero.com on 04-08-2023 21:51:38 GMT -05:00

    https://www.coursehero.com/file/78570757/class-work-chapter-5-part-adocx/
    Accounts receivable will be debited by 30x32= 960. Sales revenue credited
    by 96. Cost of goods sold will be debited by 30x23=690 and inventory
    credited by 690.

    Instructions Journalize the September transactions.


    Solution

    Sept.   6 Inventory (90 X $22).........................................   1,980


    A/P............................................................. 1,980

     9 Inventory..........................................................        90
    Cash..........................................................      90

    10 Accounts Payable............................................        69
    Inventory...................................................      69

    12 Accounts Receivable (26 X $31).....................      806
    Sales Revenue..........................................   806
    Cost of Goods Sold (26 X $23).......................      598
    Inventory...................................................   598

    14 Sales Returns and Allowances......................      31
    Accounts Receivable..............................      31
    Inventory..........................................................    23
    Cost of Goods Sold.................................      23

    20 Accounts Receivable (30 X $32)....................    960
    Sales Revenue.........................................    960
    Cost of Goods Sold (30 X $23).......................    690
    Inventory..................................................    690

    This study source was downloaded by 100000863287996 from CourseHero.com on 04-08-2023 21:51:38 GMT -05:00

    https://www.coursehero.com/file/78570757/class-work-chapter-5-part-adocx/
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