Question

On June 5, Staley Electronics purchases 230 units of inventory on account for $23 each. After closer examination, Staley determines 20 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $41 each. Required: Record transactions for the purchase, return, and sale of inventory 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.)

Answer 1

Required: Record transactions for the purchase, return, and sale of inventory assuming the company uses a perpetual inventory system.

Date	accounts & explanation	debit	credit
June 5	Merchandise inventory (230*23)	5290
	Account payable		5290
	(To record purchase)
June 9	Account payable (20*23)	460
	Merchandise inventory		460
	(To record purchase return)
June 16	Account receivable (210*41)	8610
	Sales revenue		8610
	Cost of goods sold (210*23)	4830
	Merchandise inventory		4830
	(To record sales and cost of goods sold)