. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but no discounts were offered.
Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2019, there were 225 cartridges on hand that cost $62 each. During 2019, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each and sold an additional 710 cartridges at $102 each after a midyear selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for miscellaneous reasons. Assume that Printer Supply uses a perpetual inventory system.
. Prepare summary
Record the entry for the cost of goods sold related to the sales during the year.
| Cost of Goods Sold | ? | ||
| Inventory | ? | ||
| (Recorded cost of inventory sold) |
Record the entry for the return, by customers, of the cartridges to Printer Supply.
| Sales Returns and Allowances | ? | ||
| Accounts Receivable | ? | ||
| (Recorded the sales return of defective cartridges) | |||
| Inventory | ? | ||
| Cost of Goods Sold | ? | ||
| (Recorded the inventory returned of defective cartridges) |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
