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P5-1APowell's Book Warehouse distributes hardcover books to retail stores and extends credit term 0f 2/10, n/30 to all of its customers....

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P5-1A Powell's Book Warehouse distributes hardcover books to retail stores and extends credit term 0f 2/10;n/30 to all of its customers. At the end of May, Powell's inventory consisted of books purchased for;$1,800. During June, the following merchandising transactions occurred.;June 1 Purchased books on account for $ 1,600 from Kline Publishers, FOB destination, terms 2/10;n/30. The appropriate party also made a cash payment of $50 for the freight on this date.;3 Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440.;6 Received $100 credit for books returned to Kline Publishers.;9 Paid Kline Publishers in full, less discount.;15 Received payment in full from Reading Rainbow.;17 Sold books on account to Blanco Books for $1,800. The cost of the books sold was $1,080.;20 Purchased books on account for $1,500 from Dietz Publishers, FOB destination, terms 2/15,n/30.;The appropriate party also made a cash payment of $50 for the freight on this date.;24 Received payment in full from Blanco Books.;26 Paid Dietz Publishers in full less discount.;28 Sold books on account to Reddy Bookstore for $1,400. The cost of the books sold was $850.;30 Granted Reddy Bookstore $120 credit for books returned costing $72.;Powell's Book Warehouse's 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. 595 Cost of Goods Sold.;Instructions;Journalize the transactions for the month of June for Powell's Book Warehouse using a perpetual inventory system.

 

Paper#75959 | Written in 18-Jul-2015

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