Reference no: EM132862365
Question - Blossom's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of May, Blossom's inventory consisted of books purchased for $1,600. During June, the following merchandising transactions occurred.
June 1 Purchased books on account for $1,500 from Binsfeld Publishers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.
June 3 Sold books on account to Reading Rainbow for $3,000. The cost of the books sold was $1,800.
June 6 Received $150 credit for books returned to Binsfeld Publishers.
June 9 Paid Binsfeld Publishers in full, less discount.
June 15 Received payment in full from Reading Rainbow.
June 17 Sold books on account to Rapp Books for $1,500. The cost of the books sold was $900.
June 20 Purchased books on account for $1,500 from McGinn Publishers, FOB destination, terms 1/15, n/30. The appropriate party also made a cash payment of $60 for the freight on this date.
June 24 Received payment in full from Rapp Books.
June 26 Paid McGinn Publishers in full, less discount.28Sold books on account to Baeten Bookstore for $1,300. The cost of the books sold was $970.
June 30 Granted Baeten Bookstore $180 credit for books returned costing $108.
Blossom's Book Warehouse's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.
Required - Journalize the transactions for the month of June for Blossom's Book Warehouse using a perpetual inventory system.