Recording Purchases and Sales
Printer Supply Company sells computer printers and printer food. One of its products is a toner cartridge for laser printers. At the outset of 2019, there were 200 cartridges on index at a absorb of $60 each. During 2019, Printer Supply Company purchased 1,400 cartridges at $60 each. Behind error, Printer strong that 10 cartridges were imperfect and reverted them to the supplier. Printer besides sold 800 cartridges at $93 each and sold an subjoined 750 cartridges at $102 each behind a midyear selling expense extension. Customers reverted 15 of the cartridges that were purchased at $102 to Printer for miscellaneous reasons. Assume that Printer Supply Company uses a perennial catalogue method.
1. Prepare analysis narrative entries to proceedings the purchases, sales, and revert of catalogue. Assume that all purchases and sales are on belief but no discounts were offered. Make narrative entries in the dispose that transactions are presented over.
Record the initiation for the purchases during the year.
Inventory Accounts Payable
Record the initiation for the revert, by Printer Supply Company, of the cartridges to its supplier.
Accounts Payable Catalogue
Record the initiation for the sales during the year.
Accounts Receivable Sales Revenue
Record the initiation for the absorb of movables sold connected to the sales during the year.
Cost of Movables Sold Catalogue
Record the initiation for the revert, by customers, of the cartridges to Printer Supply Company.
Sales Returns and Allowances Accounts Receivable (Recorded revert of imperfect cartridges) Catalogue Absorb of Movables Sold
2. What is the absorb of effect catalogue, absorb of movables sold, and coarse avail for 2019?
Cost of effect catalogue$Cost of movables sold$Gross avail