Recording Purchases and Sales Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2022, there were 225 cartridges on hand that cost $62 each. During 2022, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a mid-year selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a perpetual inventory system. Required: 1. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but that no discounts were offered. 2. What is the cost of ending inventory, cost of goods sold, and gross profit for 2022?
Recording Purchases and Sales
Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2022, there were 225 cartridges on hand that cost $62 each. During 2022, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a mid-year selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a perpetual inventory system.
Required:
1. Prepare summary
2. What is the cost of ending inventory, cost of goods sold, and gross profit for 2022?
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