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On September 1, the beginning of its fiscal year, Blossom Ltd. had an inventory of 124 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 930 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 30 calculators to Digital for $600 credit because they did not meet specifications. Sold 430 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $900 to Campus Book Store for the return of 30 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store.

On September 1, the beginning of its fiscal year, Blossom Ltd. had an inventory of 124 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 930 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 30 calculators to Digital for $600 credit because they did not meet specifications. Sold 430 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $900 to Campus Book Store for the return of 30 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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pt. 11 v pt. 11 v ept. 14 ept 14 ept. 29 V Accounts Receivable Sales Estimated Inventory Returns (To record credit sale) Cost of Goods Sold Estimated Inventory Returns Inventory (To record cost of merchandise sold) Cost of Goods Sold Accounts Receivable (To record return of goods) Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Payable 100 000 10 11 12900 8260 340 900 600 18000 12390 1000-40 8600 900
Transcribed Image Text:pt. 11 v pt. 11 v ept. 14 ept 14 ept. 29 V Accounts Receivable Sales Estimated Inventory Returns (To record credit sale) Cost of Goods Sold Estimated Inventory Returns Inventory (To record cost of merchandise sold) Cost of Goods Sold Accounts Receivable (To record return of goods) Inventory Cost of Goods Sold (To record cost of merchandise returned) Accounts Payable 100 000 10 11 12900 8260 340 900 600 18000 12390 1000-40 8600 900
On September 1, the beginning of its fiscal year, Blossom Ltd. had an inventory of 124 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 930 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 30 calculators to Digital for $600 credit because they did not meet specifications. Sold 430 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $900 to Campus Book Store for the return of 30 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store.
Transcribed Image Text:On September 1, the beginning of its fiscal year, Blossom Ltd. had an inventory of 124 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 930 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 30 calculators to Digital for $600 credit because they did not meet specifications. Sold 430 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $900 to Campus Book Store for the return of 30 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store.
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