Journalize the transactions for the month of October, assuming the company uses a: - Periodic inventory system - Perpetual inventory system
The earbuds are sold in cases, with each case containing a pair of earbuds. The last quarter (October to December) of 2021 began with 30 cases of earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the earbuds
October 8 |
98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. |
October 31 |
The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) |
November 4 |
A new batch of 67 cases was purchased at a total cost of $465,650 |
November 10 |
5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. |
November 30 |
During the month 60 cases were sold at a price of $10,350 each. |
December 4 |
A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. |
December 10 |
Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. |
December 30 |
121 cases were sold during December at a unit selling price of $11,085 |
December 31 |
An actual count of inventory was carried out which revealed that there were 34 cases of the brand of merchandise in the store room. |
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Unless otherwise stated, assume that all purchases were on |
Journalize the transactions for the month of October, assuming the company uses a: - Periodic inventory system - Perpetual inventory system
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