Question

Exercise 5-03

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.

Sept. 6		Purchased calculators from Ivanhoe Co. at a total cost of $1,740, terms n/30.
9		Paid freight of $60 on calculators purchased from Ivanhoe Co.
10		Returned calculators to Ivanhoe Co. for $64 credit because they did not meet specifications.
12		Sold calculators costing $560 for $780 to Fryer Book Store, terms n/30.
14		Granted credit of $35 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $24.
20		Sold calculators costing $530 for $770 to Heasley Card Shop, terms n/30.

Journalize the September transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date     Sept. 6    Sept. 9    Sept. 10    Sept. 12    Sept. 14    Sept. 20	enter an account title for entry 1	enter a debit amount	enter a credit amount
	enter an account title for entry 1	enter a debit amount	enter a credit amount
choose a transaction date     Sept. 6    Sept. 9    Sept. 10    Sept. 12    Sept. 14    Sept. 20	enter an account title for entry 2	enter a debit amount	enter a credit amount
	enter an account title for entry 2	enter a debit amount	enter a credit amount
choose a transaction date     Sept. 6    Sept. 9    Sept. 10    Sept. 12    Sept. 14    Sept. 20	enter an account title for entry 3	enter a debit amount	enter a credit amount
	enter an account title for entry 3	enter a debit amount	enter a credit amount
choose a transaction date     Sept. 6    Sept. 9    Sept. 10    Sept. 12    Sept. 14    Sept. 20	enter an account title for entry 4 to record credit sales	enter a debit amount	enter a credit amount
	enter an account title for entry 4 to record credit sales	enter a debit amount	enter a credit amount
	(To record sale of calculators on account)
choose a transaction date Sept. 6Sept. 9Sept. 10Sept. 12Sept. 14Sept. 20	enter an account title for entry 5	enter a debit amount	enter a credit amount
	enter an account title for entry 5	enter a debit amount	enter a credit amount
	(To record cost of calculators sold)
choose a transaction date     Sept. 6    Sept. 9    Sept. 10    Sept. 12    Sept. 14    Sept. 20	enter an account title for entry 6 to record credit granted for returned goods	enter a debit amount	enter a credit amount
	enter an account title for entry 6 to record credit granted for returned goods	enter a debit amount	enter a credit amount
	(To record return of calculator that was not ordered)
choose a transaction date Sept. 6Sept. 9Sept. 10Sept. 12Sept. 14Sept. 20	enter an account title for entry 7	enter a debit amount	enter a credit amount
	enter an account title for entry 7	enter a debit amount	enter a credit amount
	(To record cost of calculators returned)
choose a transaction date     Sept. 6    Sept. 9    Sept. 10    Sept. 12    Sept. 14    Sept. 20	enter an account title for entry 8 to record sales	enter a debit amount	enter a credit amount
	enter an account title for entry 8 to record sales	enter a debit amount	enter a credit amount
	(To record sale of calculators on account)
choose a transaction date Sept. 6Sept. 9Sept. 10Sept. 12Sept. 14Sept. 20	enter an account title for entry 9 to record cost of goods sold	enter a debit amount	enter a credit amount
	enter an account title for entry 9 to record cost of goods sold	enter a debit amount	enter a credit amount
	(To record cost of calculators sold)

Answer 1

Date		Debit	Credit
Sep 6	Inventory Dr.	1,740
	To accounts payable		1,740
Sep 9	Inventory Dr.	60
	To cash		60
Sep 10	Accounts payable Dr.	64
	To inventory		64
Sep 12	Accounts receivable Dr.	780
	To sales revenue		780
	COGS Dr.	560
	To inventory		560
Sep 14	Sales returns and allowances Dr.	35
	To accounts receivable		35
	Inventory Dr.	24
	To COGS		24
Sep 20	Accounts receivable Dr.	770
	To sales revenue		770
	COGS Dr.	530
	To inventory		530