Blossom Company uses a perpetual inventory system. Its beginning inventory consists of 108 units that cost $73 each. During June, (1) the company purchased 323 units at $73 each on account, (2) returned 13 units for credit, and (3) sold 269 units at $108 each. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Business

Catherine Gallagher

10 July, 13:07

Blossom Company uses a perpetual inventory system. Its beginning inventory consists of 108 units that cost $73 each. During June, (1) the company purchased 323 units at $73 each on account, (2) returned 13 units for credit, and (3) sold 269 units at $108 each. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Gauge · Answer 1

The journal entries are as follows:

(1) Merchandise Inventory A/c (323 * $73) Dr. $23,579

To accounts payable $23,579

(To record the Purchase made on account)

(2) Accounts Payable A/c (13 * $73) Dr. $949

To Merchandise Inventory A/c $949

(To record the merchandise returned)

(3) Accounts Receivables A/c (269 * $108) Dr. $29,052

To Sales Revenue $29,052

(To record the merchandise sold on account)

Cost of Goods sold A/c (269 * $73) Dr. $19,637

To Merchandise Inventory $19,637

(To record the merchandise sold)