Paul's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Paul's inventory consisted of books purchased for $1,800. During June the following merchandising transactions occurred. June 1 Purchased books on account for $1,200 from Logan Publishers, FOB destination, terms 2/10, n/30.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 $2,400.
6 Received $100 credit for books returned to Logan Publishers.
9 Paid Logan Publishers in full, less discount.
15 Received payment in full from Reading Rainbow.
17 Sold books on account to Cheap Books for $1,800.The cost of the books sold was $1,080.
20 Purchased books on account for $1,500 from Phantom Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.
24 Received payment in full from Cheap Books.
26 Paid Phantom Publishers in full, less discount.
28 Sold books on account to Willow Bookstore for $1,300.The cost of the books sold was $780.
30 Granted Willow Bookstore $120 credit for books returned costing $72.
Paul's Book Warehouse's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, No. 505 Cost of Goods Sold.
Instructions
Journalize the transactions for the month of June for Paul's Book Warehouse using a perpetual inventory system.