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21 January, 01:11

Kingbird Company uses a perpetual inventory system. Its beginning inventory consists of 103 units that cost $70 each. During June, (1) the company purchased 308 units at $70 each on account, (2) returned 12 units for credit, and (3) sold 256 units at $103 each. Journalize the June transactions.

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  1. 21 January, 05:08
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    Inventory Closing Value is $10080

    Explanation:

    Dr. Cr.

    (1) the company purchased 308 units at $70 each on account

    Inventory (308 x 70) 21560

    Account Payable / Cash 21560

    (2) Returned 12 units for credit

    Account Payable / Cash 770

    Inventory (11 x 70) 770

    (3) Sold 256 units at $103 each.

    Account receivable / Cash 26368

    Sales (256 x 103) 26368

    Cost of Goods sold 17920

    Inventory Account: Dr. Cr. Balance

    Opening Balance (103 x $70) $7210

    (1) Purchase $21560 $28770

    (2) Purchase Return $770 $28000

    (3) Sale $17920 $10080

    Inventory Closing Value is $10080
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