Cullumber Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers.
During the month of June, the following merchandising transactions occurred.

June 1 Purchased books on account for $2,160 (including freight) from Catlin
Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,000. The cost of
the merchandise sold was $800.
6 Received $60 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,700. The cost of the
merchandise sold was $950.
20 Purchased books on account for $900 from Priceless Book Publishers,
terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,950. The cost of the
merchandise sold was $980.
30 Granted General Bookstore $140 credit for books returned costing $50.

Required:
Journalize the transactions for the month of June for Cullumber Warehouse, using a perpetual inventory system. (If no entry is required, write "No Entry" for the account titles and enter 0 for the amounts. )

Answer and Explanation:

The journal entries are shown below:

On Jun 1

Merchandise Inventory$2,160

         To accounts payable  $2,160

(Being the purchased books on account is recorded)  

On Jun 3

Accounts receivable$1,000

          To sales revenue  $1,000

(Being the credit sales is recorded)  

Cost of goods sold$800

         To Merchandise Inventory  $800

(Being the cost of merchandise sold is recorded)  

On Jun 6

Accounts payable$60

            To Merchandise Inventory  $60

(Being books returned is recorded)  

On Jun 9

Accounts payable$2,100    ($2,160 - $60)

       To Merchandise Inventory ($2,100 × 2%)  $42

        To cash  $2,058

(Being  payment fully paid at discount)  

On Jun 15

Cash$1,000

  To accounts receivable  $1,000

(Being received payment is recorded)  

On Jun 17

Accounts receivable$1,700  

         To sales revenue  $1,700

(Being the credit sales is recorded )  

Cost of goods sold$950  

          To Merchandise Inventory  $950

(Being the cost of merchandise sold is recorded)  

On Jun 20

Merchandise Inventory$900

  To accounts payable  $900

(Being the purchases made on account is recorded)  

On Jun 24

Cash$1,666  

Sales Discounts ($1,700 × 2%) $34

  To Accounts receivable  $1,700

(Being the payment received fully at discount is recorded)  

On Jun 26

Accounts payable$900  

       To Merchandise Inventory ($900 × 3%) $27

       To cash  $873

(Being the payment is recorded)  

On Jun 28

Accounts receivable$1,950

         To sales revenue  $1,950

(Being the credit sales is recorded)  

Cost of goods sold$980

        To Merchandise Inventory  $980

(Being the cost of merchandise sold is recorded)  

On Jun 30

Sales returns and allowances$140

  To accounts receivable  $ 140

(Being the sales returns is recorded)  

Merchandise Inventory$50

  To cost of goods sold  $50

(Being the cost of merchandise returned is recorded)

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