Reference no: EM133136373
Question - At the beginning of June 2021, Bramble Distributing Company's ledger showed Cash $17,000, Merchandise Inventory $5,100, and D. Bramble, Capital $22,100. During the month of June, the company had the following selected transactions:
June 1 Purchased $8,800 of merchandise inventory from Sun Supply Co., terms 1/15, n/30, FOB destination.
June 2 The correct company paid $240 cash for freight charges on the June 1 purchase.
June 5 Sold merchandise inventory to Moose Jaw Retailers for $12,500. The cost of the merchandise was $7,700 and the terms were 2/10, n/30, FOB destination.
June 6 Issued a $1,000 credit for merchandise returned by Moose Jaw Retailers. The merchandise originally cost $616 and was returned to inventory.
June 6 The correct company paid $290 freight on the June 5 sale.
June 7 Purchased $770 of supplies for cash.
June 10 Purchased $4,250 of merchandise inventory from Fey Wholesalers, terms 2/10, n/30, FOB shipping point.
June 10 The correct company paid $110 freight costs on the purchase from Fey Wholesalers.
June 12 Received a $300 credit from Fey Wholesalers for returned merchandise.
June 14 Paid Sun Supply Co. the amount due.
June 15 Collected the balance owing from Moose Jaw Retailers.
June 19 Sold merchandise for $7,100 cash. The cost of this merchandise was $4,600.
June 20 Paid Fey Wholesalers the balance owing from the June 10 purchase.
June 25 Made a $460 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $298. The merchandise was damaged and could not be resold.
June 30 Sold merchandise to Bauer & Company for $4,400, terms n/30, FOB shipping point. Bramble's cost for this merchandise was $2,900.
Required - Record the transactions assuming Bramble uses a perpetual inventory system and the earnings approach.