Perpetual inventory system

Reference no: EM131812151

Reid Supply uses a perpetual inventory system. Their beginning inventory included 15 backpacks at a cost of $20 each. During September, the following transactions occurred. Their chart of accounts used is provided below. Prepare the correct journal entries for the monthly transactions of the company.

Chart of Accounts		Transactions
100	Cash	4-Sep	Purchased 70 backpacks at $20 each from Hunter with terms 2/10, n/30 and FOB Destination
105	Accounts Receivable	5-Sep	The appropriate party for the Sept 4th purchase pays $50 for freight costs
110	Supplies	6-Sep	Returned 5 backpacks from the Sept 4th purchase and received a credit of $100
115	Inventory	9-Sep	Sold 45 backpacks for $35 each to Oliver Books with terms 2/10, n/30 and FOB Destination
200	Accounts Payable	10-Sep	The appropriate party for the Sept 9th sale pays $40 for freight costs
300	Common Stock	12-Sep	Oliver Books returned 5 backpacks from the Sept 9th sale
400	Sales Revenue	13-Sep	Purchased 50 backpacks at $20 each from Swann with terms 3/15, n/30 and FOB Shipping Point
405	Sales Returns & Allowances	14-Sep	The appropriate party for the Sept 13th purchase pays $45 for freight costs
410	Sales Discounts	14-Sep	Paid Hunter in full, less discount for outstanding balance
500	Cost of Goods Sold	17-Sep	Received payment in full from Oliver Books, less discount for outstanding balance
505	Freight Out
510	Rent Expense

Date	Account Titles	Ref.	Debit	Credit
4-Sep

5-Sep

6-Sep

9-Sep



10-Sep

12-Sep



13-Sep

14-Sep

14-Sep


17-Sep

Reference no: EM131812151

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