Concord Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Concord's inventory consists of 240 books purchased at $18 each. Concord uses a perpetual inventory system. Return rates in the book industry are high, with Concord experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 3 5 8 9 11 12 17 22 25 29 Purchased 180 books on account for $16 each from Reader's World Publishers, terms n/45. Sold 230 books on account to The Book Nook for $25 each, with an assumed average cost of $17, terms n/45. Received a $144 credit for 9 books returned to Reader's World Publishers. Sold 85 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $17, terms n/45. Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. urchased 130 books on for $14 each from Read More Publishers, terms n/45. Received payment in full from The Book Nook. Received payment in full from Read-A-Lot Bookstore. Sold 125 books on account to Reader's Bookstore for $25 each, with an assumed average cost of $17, terms n/45. Granted Reader's Bookstore a $375 credit for 15 returned books. These books were restored to inventory. Paid Reader's World Publishers in full.
Concord Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Concord's inventory consists of 240 books purchased at $18 each. Concord uses a perpetual inventory system. Return rates in the book industry are high, with Concord experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 3 5 8 9 11 12 17 22 25 29 Purchased 180 books on account for $16 each from Reader's World Publishers, terms n/45. Sold 230 books on account to The Book Nook for $25 each, with an assumed average cost of $17, terms n/45. Received a $144 credit for 9 books returned to Reader's World Publishers. Sold 85 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $17, terms n/45. Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. urchased 130 books on for $14 each from Read More Publishers, terms n/45. Received payment in full from The Book Nook. Received payment in full from Read-A-Lot Bookstore. Sold 125 books on account to Reader's Bookstore for $25 each, with an assumed average cost of $17, terms n/45. Granted Reader's Bookstore a $375 credit for 15 returned books. These books were restored to inventory. Paid Reader's World Publishers in full.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Record the June transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the
amounts. Round your answers to 0 decimal places, e.g. 5,275.)
Date
June 1
June 3
June 3
V
Account Titles and Explanation
Inventory
Accounts Payable
Accounts Receivable
Sales
Refund Liability
(To record sales)
Cost of Goods Sold
Estimated Inventory Returns
Inventory
HA
2
10
1
Debit
2880
5750
1840
5750
5750
Credit
Transcribed Image Text:Concord Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Concord's inventory consists of 240
books purchased at $18 each. Concord uses a perpetual inventory system. Return rates in the book industry are high, with Concord
experiencing a 15% return rate historically.
During the month of June, the following merchandise transactions occurred:
June
1
3
5
8
9
11
12
17
22
25
29
Purchased 180 books on account for $16 each from Reader's World Publishers, terms n/45.
Sold 230 books on account to The Book Nook for $25 each, with an assumed average cost of $17, terms n/45.
Received a $144 credit for 9 books returned to Reader's World Publishers.
Sold 85 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $17, terms n/45.
Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were
determined to be no longer saleable and were destroyed.
Purchased 130 books on account for $14 each from Read More Publishers, terms n/45.
Received payment in full from The Book Nook.
Received payment in full from Read-A-Lot Bookstore.
Sold 125 books on account to Reader's Bookstore for $25 each, with an assumed average cost of $17, terms n/45.
Granted Reader's Bookstore a $375 credit for 15 returned books. These books were restored to inventory.
Paid Reader's World Publishers in full.
1
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education