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Kern's book warehouse distributes hardcover

29/10/2021 Client: muhammad11 Deadline: 2 Day

Powell's Book Warehouse Distributes Hardcover Books To Retail Stores And Extends Credit Term 0f

P5-1A Powell's Book Warehouse distributes hardcover books to retail stores and extends credit term 0f 2/10,
n/30 to all of its customers. At the end of May, Powell's inventory consisted of books purchased for
$1,800. During June, the following merchandising transactions occurred.
June 1 Purchased books on account for $ 1,600 from Kline 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 $2,500. The cost of the books sold was $1,440.
6 Received $100 credit for books returned to Kline Publishers.
9 Paid Kline Publishers in full, less discount.
15 Received payment in full from Reading Rainbow.
17 Sold books on account to Blanco Books for $1,800. The cost of the books sold was $1,080.
20 Purchased books on account for $1,500 from Dietz 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 Blanco Books.
26 Paid Dietz Publishers in full less discount.
28 Sold books on account to Reddy Bookstore for $1,400. The cost of the books sold was $850.
30 Granted Reddy Bookstore $120 credit for books returned costing $72.
Powell's Book Warehouse's chart of accounts includes the following: No.101 Cash, No.112, Accounts Receivable,
No.120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No.412 Sales Returns and Allowances, No. 414
Sales Discounts, and No. 595 Cost of Goods Sold.
Instructions
Journalize the transactions for the month of June for Powell's Book Warehouse using a perpetual inventory system.

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