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6 June, 11:48

DS Unlimited has the following transactions during August. August 6 Purchases 84 handheld game devices on account from GamerGirl, Inc., for $270 each, terms 2/10, n/60. August 7 Pays $470 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GamerGirl nine game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 64 game devices purchased on August 6 for $290 each to customers on account. The total cost of the 64 game devices sold is $17,335.00.

Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)

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  1. 6 June, 12:18
    0
    The journal entries are shown below:

    On August 6

    Merchandise Inventory A/c Dr $22,680 (84 handheld games * $270)

    To Account payable A/c $22,680

    (Being the inventory purchased is recorded)

    On August 7

    Merchandise Inventory A/c Dr $470

    To Cash A/c $470

    (Being the freight cost is paid)

    On August 10

    Account payable A/c $2,430 (9 handheld games * $270)

    To Merchandise inventory A/c $2,430

    (Being the goods are returned)

    On August 14

    Account payable A/c Dr $20,250 ($22,680 - $2,430)

    To Merchandise Inventory A/c $405 ($20,250 * 2%)

    To Cash A/c $19,845

    (Being the amount due is paid)

    On August 23

    Accounts Receivable A/c Dr $18,560 (64 handheld games * $290)

    To Sales revenue A/c $18,560

    (Being the sales on credit basis is recorded)

    Cost of goods sold A/c Dr $17,335

    To Merchandise Inventory A/c $17,335

    (Being the total cost is recorded)
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