Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.

Sept. 6 Purchased calculators from Carla Vista Co. at a total cost of $1,800, terms n/30.
9 Paid freight of $50 on calculators purchased from Carla Vista Co.
10 Returned calculators to Carla Vista Co. for $51 credit because they did not meet specifications.
12 Sold calculators costing $460 for $670 to Fryer Book Store, terms n/30.
14 Granted credit of $40 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $28.
20 Sold calculators costing $560 for $780 to Heasley Card Shop, terms n/30.

Prepare the journal entriy for the Office Depot.

Answer and Explanation:

The Journal entry is shown below:-

1. Inventory Dr, $1,800

       To accounts payable $1,800

(Being purchase of calculators on account is recorded)

2. Inventory Dr, $50

     To cash $50

(Being inventory is recorded)

3. Accounts payable Dr, $51

     To inventory $51

(Being return of calculators is recorded)

4. Accounts Receivable $670

     To Sales revenue $670

(Being sales revenue is recorded)

5. Cost of Goods Sold Dr, $460

     To Inventory $$460

(Being cost of goods sold is recorded)

6. Sales returns Dr, $40

     To Accounts receivable $40

(Being goods returned by customer is recorded)

7.  Inventory Dr, $28

     To Cost of Goods Sold $28

(Being cost of goods sold returned is recorded)

8. Cost of Goods Sold Dr, $780

      To Sales revenue $780

(Being cost of goods sold is recorded)

9. Cost of Goods Sold Dr, $560

      To inventory $560

(Being cost of goods sold is recorded)

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.