On September 1, the beginning of its fiscal year, Campus Office Supply Ltd. had an inventory of 82 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 615 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 9 calculators to Digital for $180 credit because they did not meet specifications. Sold 220 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $270 to Campus Book Store for the return of 9 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, Campus Office Supply Ltd. had an inventory of 82 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 615 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 9 calculators to Digital for $180 credit because they did not meet specifications. Sold 220 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $270 to Campus Book Store for the return of 9 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 And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 1COMP: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account...

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On September 1, the beginning of its fiscal year, Crane Ltd. had an inventory of 104 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 Purchased 780 calculators for $20 each from Digital Corp. on account, terms n/30. 10 Returned 20 calculators to Digital for $400 credit because they did not meet specifications. 11 Sold 330 calculators for $30 each to Campus Book Store, terms n/30. ranagement estimates returns of 4% based on prior experience. 14 Granted credit of $600 to Campus Book Store for the return of 20 calculators that were not ordered. The calculators were restored to inventory. 29 Paid Digital the amount owing. 30 Received payment in full from the Campus Book Store. create Taccounts for inventory and cost of goods sold accounts
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