On September 1 Reid Supply had an inventory of 15 backpacks at a cost of $20 each. The company uses a perpetual inventory system. During September the following transactions and events occurred.
Sept. 4 Purchased 70 backpacks at $20 each from Hunter terms 2/10 n/30.
Sept. 6 Received credit of $100 for the return of 5 backpacks purchased on Sept. 4 that were defective.
Sept. 9 Sold 40 backpacks for $35 each to Oliver Books terms 2/10 n/30.
Sept. 13 Sold 15 backpacks for $35 each to Heller Office Supply terms n/30.
Sept. 14 Paid Hunter in full less discount.
Instructions
Journalize the September transactions for Reid Supply.

Question

Melania Stefani · Accepted Answer

Final Answer :  Sept. 4   Inventory.  1 , 400  Accounts Payable  1 , 400  Sept. 6  Accounts Payable  100 Inventory  100  Sept. 9   Accounts Receivable  1 , 400  Sales Revenue 1 , 400  Cost of Goods sold  800  Inventory  800  Sept. 13   Accounts Receivable  525 Sales Revenue  525 Cost of Goods Sold  300  Inventory 300 \begin{array}{llcc}  	ext {Sept. 4  }  &  	ext { Inventory.  }  & 1,400\ &  	ext { Accounts Payable }  & & 1,400\\ 	ext { Sept. 6 }  &  	ext {Accounts Payable  }  & 100\ &  	ext {Inventory  }  & & 100\\ 	ext { Sept. 9 }  &  	ext {  Accounts Receivable }  & 1,400\ &  	ext {  Sales Revenue}  & & 1,400\\ &  	ext { Cost of Goods sold }  & 800\ &  	ext { Inventory } & & 800 \\ 	ext { Sept. 13 }  &  	ext { Accounts Receivable }  & 525\ &  	ext {Sales Revenue  }  & & 525\\ &  	ext {Cost of Goods Sold  }  & 300\ &  	ext {  Inventory}  & & 300\ \end{array} Sept. 4   Sept. 6   Sept. 9   Sept. 13  ​  Inventory.   Accounts Payable  Accounts Payable  Inventory   Accounts Receivable   Sales Revenue  Cost of Goods sold   Inventory   Accounts Receivable  Sales Revenue  Cost of Goods Sold   Inventory ​ 1 , 400 100 1 , 400 800 525 300 ​ 1 , 400 100 1 , 400 800 525 300 ​  Sept. 14  Accounts Payable  ( $ 1 , 400 − $ 100 )   1 , 300  Cash  ( $ 1 , 300 × . 98 )   1 , 274  Inventory  ( $ 1 , 300 × . 02 )   26 \begin{array}{llcc}  	ext {  Sept. 14 }  &  	ext {Accounts Payable   (\$ 1,400-\$ 100)    }  & 1,300\ &  	ext { Cash   (\$ 1,300 	imes .98)    }  & & 1,274\ &  	ext { Inventory   (\$ 1,300 	imes .02)    }  & & 26\end{array}  Sept. 14  ​ Accounts Payable  ( $1 , 400 − $100 )    Cash  ( $1 , 300 × .98 )    Inventory  ( $1 , 300 × .02 )   ​ 1 , 300 ​ 1 , 274 26 ​

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