Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of the year, there were 200 cartridges on hand that cost $60 each. During the year, Printer Supply purchased 1,400 cartridges at $60 each. After inspection, Printer Supply determined that 10 cartridges were defective and returned them to the supplier. Printer Supply also sold 800 cartridges at $87 each and sold an additional 750 cartridges at $102 each after a midyear selling price increase. Customers returned 15 of the cartridges that were purchased at $102 to Printer Supply for miscellaneous reasons. Assume that Printer Supply uses a perpetual inventory system. Required:
1. Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but no discounts were offered. Make journal entries in the order that transactions are presented above. Record the entry for the purchases during the year. If an amount box does not require an entry, leave it blank. Record the entry for the return, by Printer Supply Company, of the cartridges to its supplier. If an amount box does not require an entry, leave it blank. Record the entry for the cost of goods sold related to the sales during the year. If an amount box does not require an entry, leave it blank. 금 Record the entry for the return, by customers, of the cartridges to Printer Supply Company. If an amount box does not require an entry, leave it blank. (Recorded the sales return of defective cartridges) 88 (Recorded the inventory returned of defective cartridges)
2. What is the cost of ending inventory, cost of goods sold, and gross profit for the year? Cost of ending inventory Cost of goods sold IDI Gross profit