P5-1B Sorvino Book Warehouse distributes hardcover books to retail stores and extends

Price: $3.99


P5-1B Sorvino Book Warehouse distributes hardcover books to retail stores and extends
credit terms of 2/10, n/30 to all of its customers. At the end of May, Sorvino’s inventory consisted
of 240 books purchased at $1,200. During the month of June the following merchandising transactions
occurred.
June 1 Purchased 180 books on account for $5 each from Atkinson Publishers, FOB destination,
terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the
freight on this date.
3 Sold 120 books on account to Readers-R-Us for $10 each.
6 Received $50 credit for 10 books returned to Atkinson Publishers.
9 Paid Atkinson Publishers in full, less discount.
15 Received payment in full from Readers-R-Us.
17 Sold 150 books on account to Bargain Books for $10 each.
20 Purchased 120 books on account for $5 each from Bookem 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 Bargain Books.
26 Paid Bookem Publishers in full, less discount.
28 Sold 110 books on account to Read-n-Weep Bookstore for $10 each.
30 Granted Read-n-Weep Bookstore $150 credit for 15 books returned costing $75.
Sorvino 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 transactions for the month of June for Sorvino Book Warehouse using a perpetual
inventory system.