Cullumber Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June
1 Purchased books on account for $3,065 (including freight) from Catlin Publishers, terms 4/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,000. The cost of the merchandise sold was $850.
6 Received $65 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,750, terms of 4/10, n/30. The cost of the merchandise sold was $950.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 1/15, n/30.
24 Received payment in full, less discount from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $2,950. The cost of the merchandise sold was $920.
30 Granted General Bookstore $240 credit for books returned costing $55.

Required:
Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system.

01-Jun

Dr Inventory$3,065

Cr Accounts Payable $3,065

03-Jun

Dr Accounts Receivable$1,000

Cr Sales $1,000

03-Jun

Dr Cost of goods sold$850

Cr Inventory $850

06-Jun

Dr Accounts Payable$ 65

Cr Inventory $ 65

09-Jun

Dr Accounts Payable$ 3,000

Cr Cash $2,880

Cr Inventory $120

15-Jun

Dr Cash$ 1,000

Cr Accounts Receivable $ 1,000

17-Jun

Dr Accounts Receivable$1,750

Cr Sales $1,750

17-Jun

Dr Cost of goods sold$950

Cr Inventory $950

20-Jun

Dr Inventory$900

Cr Accounts Payable $900

24-Jun

Dr Cash$1,680

Dr Sales Discounts$70

Cr Accounts Receivable $1,750

26-Jun

Dr Accounts Payable$ 900

Cr Cash $891

Cr Inventory $ 9

28-Jun

Dr Accounts Receivable$2,950

Cr Sales $2,950

28-Jun

Dr Cost of goods sold$920

Cr Inventory $920

30-Jun

Dr Sales Returns & Allowances$240

Cr Accounts Receivable $240

30-Jun

Dr Inventory$ 55

Cr Cost of goods sold $ 55

Explanation:

Preparation of the Journal entries for the month of June for Powell Warehouse, using a perpetual inventory system.

01-Jun

Dr Inventory$3,065

Cr Accounts Payable $3,065

03-Jun

Dr Accounts Receivable$1,000

Cr Sales $1,000

03-Jun

Dr Cost of goods sold$850

Cr Inventory $850

06-Jun

Dr Accounts Payable$ 65

Cr Inventory $ 65

09-Jun

Dr Accounts Payable$ 3,000

($3,065-65)

Cr Cash $2,880

($3,000-$120)

Cr Inventory $120

($3,000*4%)

15-Jun

Dr Cash$ 1,000

Cr Accounts Receivable $ 1,000

17-Jun

Dr Accounts Receivable$1,750

Cr Sales $1,750

17-Jun

Dr Cost of goods sold$950

Cr Inventory $950

20-Jun

Dr Inventory$900

Cr Accounts Payable $900

24-Jun

Dr Cash$1,680

($1,750-$70)

Dr Sales Discounts$70 (1,750*4%)

Cr Accounts Receivable $1,750

26-Jun

Dr Accounts Payable$ 900

Cr Cash $891

($900-$9)

Cr Inventory $ 9

($900*1%)

28-Jun

Dr Accounts Receivable$2,950

Cr Sales $2,950

28-Jun

Dr Cost of goods sold$920

Cr Inventory $920

30-Jun

Dr Sales Returns & Allowances$240

Cr Accounts Receivable $240

30-Jun

Dr Inventory$ 55

Cr Cost of goods sold $ 55