On June 5, Staley Electronics purchases 180 units of inventory on account for $18 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 $31 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.)
Record the purchase of inventory on account.
Record the return of inventory purchased.
Record the sale of inventory on account.
Record the cost on invenotry sold.
Journal entry :
Date | accounts & explanation | debit | credit |
June 5 | Merchandise inventory (180*18) | 3240 | |
Account payable | 3240 | ||
(To record purchase of inventory) | |||
June 9 | Account payable (20*18) | 360 | |
Merchandise inventory | 360 | ||
(To record return of inventory) | |||
June 16 | Account receivable (160*31) | 4960 | |
Sales revenue | 4960 | ||
(To record Sales) | |||
June 16 | Cost of goods sold (160*18) | 2880 | |
Merchandise inventory | 2880 | ||
(To record cost of goods sold) | |||
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