Sandhill Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June
1 Purchased books on account for $2,575 (including freight) from Catlin Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900.
6 Received $75 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 $1,150. The cost of the merchandise sold was $750.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,900. The cost of the merchandise sold was $970. 30 Granted General Bookstore $130 credit for books returned costing $90.

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

01-Jun

Dr Inventory$2,575

Cr Accounts Payable $2,575

03-Jun

Dr Accounts Receivable$1,300

Cr Sales $1,300

03-Jun

Dr Cost of goods sold$900

Cr Inventory $900

06-Jun

Dr Accounts Payable$75

Cr Inventory $75

09-Jun

Dr Accounts Payable$2,500

Cr Cash $2,450

Cr Inventory $50

15-Jun

Dr Cash$1,300

Cr Accounts Receivable $1,300

17-Jun

Dr Accounts Receivable$1,150

Cr Sales $1,150

17-Jun

Dr Cost of goods sold$ 750

Cr Inventory $ 750

20-Jun

Dr Inventory$ 900

Cr Accounts Payable $ 900

24-Jun

Dr Cash$1,127

Dr Sales Discounts$ 23

Cr Accounts Receivable $1,150

26-Jun

Dr Accounts Payable$ 900

Cr Cash $873

Cr Inventory $27

28-Jun

Dr Accounts Receivable$1,900

Cr Sales $1,900

28-Jun

Dr Cost of goods sold$970

Cr Inventory $970

30-Jun

Dr Sales Returns & Allowances$130

Cr Accounts Receivable $130

30-Jun

Dr Inventory$90

Cr Cost of goods sold $90

Explanation:

Preparation of the journal entries for the month of June for Sandhill Warehouse, using a perpetual inventory system.

01-Jun

Dr Inventory$2,575

Cr Accounts Payable $2,575

03-Jun

Dr Accounts Receivable$1,300

Cr Sales $1,300

03-Jun

Dr Cost of goods sold$900

Cr Inventory $900

06-Jun

Dr Accounts Payable$75

Cr Inventory $75

09-Jun

Dr Accounts Payable$2,500

($2,575-$75)

Cr Cash $2,450

($2,500-$50)

Cr Inventory $50

($2,500*2%)

15-Jun

Dr Cash$1,300

Cr Accounts Receivable $1,300

17-Jun

Dr Accounts Receivable$1,150

Cr Sales $1,150

17-Jun

Dr Cost of goods sold$ 750

Cr Inventory $ 750

20-Jun

Dr Inventory$ 900

Cr Accounts Payable $ 900

24-Jun

Dr Cash$1,127

($1,150-$23)

Dr Sales Discounts$ 23

($1,150*2%)

Cr Accounts Receivable $1,150

26-Jun

Dr Accounts Payable$ 900

Cr Cash $873

($900-$27)

Cr Inventory $27

(900*3%)

28-Jun

Dr Accounts Receivable$1,900

Cr Sales $1,900

28-Jun

Dr Cost of goods sold$970

Cr Inventory $970

30-Jun

Dr Sales Returns & Allowances$130

Cr Accounts Receivable $130

30-Jun

Dr Inventory$90

Cr Cost of goods sold $90

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