Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June, Jordanengaged in the following transactions its first month of operations:a. On June 1, Jordan purchased, on credit, 100 pairs of basketball shoes and 210 pairs of runningshoes with credit terms of 2/10, n/30. The basketball shoes were purchased at a cost of$85 per pair, and the running shoes were purchased at a cost of $60 per pair. Jordan paidMole Trucking $310 cash to transport the shoes from the manufacturer to Jordan’s warehouse,shipping terms were F.O.B. shipping point, and the items were shipped on June 1and arrived on June 4.b. On June 2, Jordan purchased 88 pairs of cross-training shoes for cash. The shoes cost Jordan$65 per pair.c. On June 6, Jordan purchased 125 pairs of tennis shoes on credit. Credit terms were 2/10, n/25. The shoes were purchased at a cost of $45 per pair.d. On June 10, Jordan paid for the purchase of the basketball shoes and the running shoes inTransaction a.e. On June 12, Jordan determined that $585 of the tennis shoes were defective. Jordan returnedthe defective merchandise to the manufacturer.f. On June 18, Jordan sold 50 pairs of basketball shoes at $116 per pair, 92 pairs of runningshoes for $85 per pair, 21 pairs of cross-training shoes for $100 per pair, and 48 pairs of tennisshoes for $68 per pair. All sales were for cash. The cost of the merchandise sold was$13,295. No sales returns are expected.g. On June 21, customers returned 10 pairs of the basketball shoes purchased on June 18. Thecost of the merchandise returned was $850.h. On June 23, Jordan sold another 20 pairs of basketball shoes, on credit, for $116 per pairand 15 pairs of cross-training shoes for $100 cash per pair. The cost of the merchandise sold was $2,675 i. On June 30, Jordan paid for the June 6 purchase of tennis shoes minus the return on June12.j. On June 30, Jordan purchased 60 pairs of basketball shoes, on credit, for $85 each. Theshoes were shipped F.O.B. destination and arrived at Jordan on July 3.Required:1. Prepare the journal entries to record the sale and purchase transactions for Jordan duringJune 2019.2. Assuming operating expenses of $5,300 and income taxes of $365, prepare Jordan’s incomestatement for June 2019.

Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June, Jordanengaged in the following transactions its first month of operations:a. On June 1, Jordan purchased, on credit, 100 pairs of basketball shoes and 210 pairs of runningshoes with credit terms of 2/10, n/30. The basketball shoes were purchased at a cost of$85 per pair, and the running shoes were purchased at a cost of $60 per pair. Jordan paidMole Trucking $310 cash to transport the shoes from the manufacturer to Jordan’s warehouse,shipping terms were F.O.B. shipping point, and the items were shipped on June 1and arrived on June 4.b. On June 2, Jordan purchased 88 pairs of cross-training shoes for cash. The shoes cost Jordan$65 per pair.c. On June 6, Jordan purchased 125 pairs of tennis shoes on credit. Credit terms were 2/10, n/25. The shoes were purchased at a cost of $45 per pair.d. On June 10, Jordan paid for the purchase of the basketball shoes and the running shoes inTransaction a.e. On June 12, Jordan determined that $585 of the tennis shoes were defective. Jordan returnedthe defective merchandise to the manufacturer.f. On June 18, Jordan sold 50 pairs of basketball shoes at $116 per pair, 92 pairs of runningshoes for $85 per pair, 21 pairs of cross-training shoes for $100 per pair, and 48 pairs of tennisshoes for $68 per pair. All sales were for cash. The cost of the merchandise sold was$13,295. No sales returns are expected.g. On June 21, customers returned 10 pairs of the basketball shoes purchased on June 18. Thecost of the merchandise returned was $850.h. On June 23, Jordan sold another 20 pairs of basketball shoes, on credit, for $116 per pairand 15 pairs of cross-training shoes for $100 cash per pair. The cost of the merchandise sold was $2,675 i. On June 30, Jordan paid for the June 6 purchase of tennis shoes minus the return on June12.j. On June 30, Jordan purchased 60 pairs of basketball shoes, on credit, for $85 each. Theshoes were shipped F.O.B. destination and arrived at Jordan on July 3.Required:1. Prepare the journal entries to record the sale and purchase transactions for Jordan duringJune 2019.2. Assuming operating expenses of $5,300 and income taxes of $365, prepare Jordan’s incomestatement for June 2019.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 66BPSB: Recording Sale and Purchase Transactions Jordan Footwear sells athletic shoes and uses the perpetual...

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Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June, Jordan
engaged in the following transactions its first month of operations:
a. On June 1, Jordan purchased, on credit, 100 pairs of basketball shoes and 210 pairs of running
shoes with credit terms of 2/10, n/30. The basketball shoes were purchased at a cost of
$85 per pair, and the running shoes were purchased at a cost of $60 per pair. Jordan paid
Mole Trucking $310 cash to transport the shoes from the manufacturer to Jordan’s warehouse,
shipping terms were F.O.B. shipping point, and the items were shipped on June 1
and arrived on June 4.
b. On June 2, Jordan purchased 88 pairs of cross-training shoes for cash. The shoes cost Jordan
$65 per pair.
c. On June 6, Jordan purchased 125 pairs of tennis shoes on credit. Credit terms were 2/10, n/
25. The shoes were purchased at a cost of $45 per pair.
d. On June 10, Jordan paid for the purchase of the basketball shoes and the running shoes in
Transaction a.
e. On June 12, Jordan determined that $585 of the tennis shoes were defective. Jordan returned
the defective merchandise to the manufacturer.
f. On June 18, Jordan sold 50 pairs of basketball shoes at $116 per pair, 92 pairs of running
shoes for $85 per pair, 21 pairs of cross-training shoes for $100 per pair, and 48 pairs of tennis
shoes for $68 per pair. All sales were for cash. The cost of the merchandise sold was
$13,295. No sales returns are expected.
g. On June 21, customers returned 10 pairs of the basketball shoes purchased on June 18. The
cost of the merchandise returned was $850.
h. On June 23, Jordan sold another 20 pairs of basketball shoes, on credit, for $116 per pair
and 15 pairs of cross-training shoes for $100 cash per pair. The cost of the merchandise sold was $2,675 i. On June 30, Jordan paid for the June 6 purchase of tennis shoes minus the return on June
12.
j. On June 30, Jordan purchased 60 pairs of basketball shoes, on credit, for $85 each. The
shoes were shipped F.O.B. destination and arrived at Jordan on July 3.
Required:
1. Prepare the journal entries to record the sale and purchase transactions for Jordan during
June 2019.
2. Assuming operating expenses of $5,300 and income taxes of $365, prepare Jordan’s income
statement for June 2019.

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