Problem:
Dazzle Book Warehouse distributes hardbacks books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Dazzle's inventory consisted of 240 books purchased at $1,200. During the month of June the following merchandising transactions occurred.
June 1 Purchased 130 books on account for $5 each from Reader's World Publishers,
FOB destination, terms1/10, n/30. The appropriate party also made a cash
Payment of $50 for the freight on this date.
3 Sold 140 books on account to the Book Nook for $10 each.
6 Received $50 credit for 10 books return to Reader's World Publishers.
9 Paid Reader's World Publishers in full, less discount.
15 Received payment in full from the Book Nook.
17 Sold 120 books on account to Read-A-Lot Bookstore for $10 each.
20 Purchased120 books on account for $5 each from Read More publishers,
FOB destination, terms 2/15, n/30. The appropriate party also made a cash
Payment of $50 for the freight on this date.
24 Received payment in full from Read-A-Lot Bookstore.
25 Paid Read More Publishers in full, less discount.
28 Sold 110 books on account to Readers Bookstore for $10 each
30 Granted Readers Bookstore $150 credit for 15 books returned costing $75.
Dazzel Book Warehouse's chart of accounts includes the following: No. 101 Cash,
No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable,
No. 401 Sales, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts,
No. 505 Cost of Goods Sold.
Instructions: Journalize the transaction for the month of June for Dazzle Book Warehouse Using a perpetual inventory system.