Reference no: EM133148200
Question - Whispering Winds Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Whispering Winds's inventory consists of 270 books purchased at $18 each. Return rates in the book industry are high, with Whispering Winds experiencing a 15% returnrate historically.
During the month of June, the following merchandise transactions occurred:
June 1 Purchased 160 books on account for $16 each from Reader's World Publishers, terms n/45.
June 3 Sold 220 books on account to The Book Nook for $25 each, with an average cost of $17, terms n/45.
June 5 Received a $160 credit for 10 books returned to Reader's World Publishers.
June 8 Sold 79 books on account to Read-A-Lot Bookstore for $25 each, with an average cost of $17, terms n/45.
June 9 Issued a $325 credit memorandum to Read-A-Lot Bookstore for the return of 13 damaged books. The books were determined to be no longer saleable and were destroyed.
June 11 Purchased 130 books on account for $16 each from Read More Publishers, terms n/45.
June 12 Received payment in full from The Book Nook.
June 17 Received payment in full from Read-A-Lot Bookstore.
June 22 Sold 125 books on account to Reader's Bookstore for $26 each, with an average cost of $17, terms n/45.
June 25 Granted Reader's Bookstore a $390 credit for 15 returned books. These books were restored to inventory.
June 29 Paid Reader's World Publishers in full.
Required - Record the June transactions on Whispering Winds Book Warehouse's books, assuming it uses a periodic inventory system.