Mishal Mustafa

BTA111
Prof. Wu
Exercise Chapter Five
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.

9/6 Purchased 90 calculators at $22 each from York, terms net/30.

9/9 Paid freight of $90 on calculators purchased from York Co.

9/10 Returned 3 calculators to York Co. for $69 credit (including freight) because they did not meet
specifications.

9/12 Sold 26 calculators costing $23 (including freight) for $31 each to Sura Book Store, terms n/30.

9/14 Granted credit of $31 to Sura Book Store for the return of one calculator that was not ordered.

9/20 Sold 30 calculators costing $23 for $32 each to Davis Card Shop, terms n/30.

Instructions

Journalize the September transactions

Date Accounts Title & Explanation Debit Credit

9/6 Merchandise Inventory (90*$22) $1,980
Cash $1,980

9/9 Merchandise Inventory $90

Cash $90

9/10 Accounts Payable (3$2*3) $69

Merchandise Inventory $69

9/12 Accounts Receivable (26*$31) $806

Sales $806

Cost of Goods sold (26*$23) $598

Merchandise Inventory $598

9/14 Sales Returns and Allowances $31

Accounts Receivable $31

Merchandise Inventory $23

Cost of goods sold $23

9/20 Accounts Receivable (30*$32) $960

Sales $960

Cost of goods sold (30*$23) $690

Merchandise Inventory $690