Question

Marigold Company uses a perpetual inventory system. Its beginning inventory consists of 60 units that cost $41 each. During June, (1) the company purchased 180 units at $41 each on account, (2) returned 7 units for credit, and (3) sold 150 units at $60 each. Journalize the June 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.)

Answer 1

Perpetual Inventory System:

JOURNAL ENTRIES

Date	Account Details and Explanation	Debit ($)	Credit ($)
(1)	Inventory	7,380
	Account payable		7,380
	To record purchase inventory 180 units at $41 each on account
(2)	Account Payable	287
	Inventory		287
	To record returned 7 units of inventory at $41 each for credit
(3)	Account receivable	9,000
	Sales		9,000
	To record sales made of 150 units of inventory at $60 each
	Cost of goods sold	6,150
	Inventory		6,150
	To record Cost of goods sold of 150 units at $41 each

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