P5-1A Journalize purchase and sales transactions under a perpetual inventory system

Kern's Book Warehouse distributes hardcover books to retail stores and extend credit terms of 2/10, n/30 t
At the end of May, Kern's inventory consisted of books purchased for $1,800. During June, the following m
occurred.

June 1 Purchased books on account for $1,600 from Binsfield Publishers, FOB destination, terms 2/1
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 $1,44
6 Received $100 credit for books returned to Binsfield Publishers.
9 Paid Binsfield Publishers in full, less discount.
15 Received payment in full from Reading Rainbow.
17 Sold books on account to Rapp Books for $1,800. The cost of the books sold was $1,080.
20 Purchased books on account for $1,800 from McGinn Publishers, FOB destination, terms 2/15
The appropriate party also made a cash payment of $60 for the freight on this date.
24 Received payment in full from Rapp Books.
26 Paid McGinn Publishers in full, less discount.
28 Sold books on account to Baeton Bookstore for $1,600. The cost of the books sold was $970
30 Granted Baeton Bookstore $120 credit for books returned costing $72.

Kern's Book Warehouse's chart of accounts includes the following: No.101 Cash, No.112, Accounts Recei
No.120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No.412 Sales Returns and Allowan
Sales Discounts, and No. 505 Cost of Goods Sold.

Instructions
Journalize the transactions for the month of June for Kern's Book Warehouse using a perpetual inventory s

Perpentual Inventory System

GENERAL JOURNAL

No Date Account Title and Explanation Ref

1 June. 1 Inventory 120
Account Payable 201
(Purchase of merchandise on credit)
2 3 Account Receivable 112
Sales Revenues 401
Cost of Goods Sold 505
Inventory 120
(Sale of merchandise on credit)
3 6 Account Payable 201
Inventory 120
(Purchase returns and allowance)
4 9 Account Payable 201
Cash 101
 Inventory 120
(Payment on account with discount. June 1)
5 15 Cash 101
Sales Discount 414
Account Receivable 112
(Cash received on account with a discount
June.3)
6 17 Account Receivable 112
Sales Revenues 401
Cost of Goods Sold 505
Inventory 120
(Sale of merchandise on credit)
7 20 Inventory 120
Account Payable 201
(Purchase of merchandise on credit)
8 24 Cash 101
Sales Discount 414
Account Receivable 112
(Cash received on accoung with a discount
June. 17)
9 26 Account Payable 201
Cash 101
Inventory 120
(Payment on account with discount. June 20)
10 28 Account Receivable 112
Sales Revenues 401
Cost of Goods Sold 505
Inventory 120
(Sale of merchandise on credit)
11 30 Sales Returns and Allowance 412
Account Receivable 112
Inventory 120
Cost of Goods Sold 505
(Return of merchandise sold)
credit terms of 2/10, n/30 to all of its customers.
uring June, the following merchandising transactions

FOB destination, terms 2/10, n/30.

ght on this date.
the books sold was $1,440.

ooks sold was $1,080.

OB destination, terms 2/15,n/30.
ght on this date.

f the books sold was $970.

, No.112, Accounts Receivable,

Sales Returns and Allowances, No. 414

ing a perpetual inventory system.

Debit Credit
1,600
1,600

2,500
2,500
1,440
1,440

100
100

1,500
1,470
 30

2,450
50
2,500

1,800
1,800
1,080
1,080

1,800
1,800

1,764
36
1,800

1,800
1,764
36

1,600
1,600
970
970

120
120
72
72