RECORDING SALE AND PURCHASE TRANSACTIONS
Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June, Jordan engaged in the following transactions its first month of operations:
a. On June 1, Jordan purchased, on credit, 100 pairs of basketball shoes and 210 pairs of running shoes with credit terms of 2/10, n/30. The basketball shoes were purchased at a cost of $75 per pair, and the running shoes were purchased at a cost of $55 per pair. Jordan paid Mole Trucking $250 cash to transport the shoes from the manufacturer to Jordan’s warehouse, shipping terms were F.O.B. shipping point, and the items were shipped on June 1 and arrived on June 4.
b. On June 2, Jordan purchased 80 pairs of cross-training shoes for cash. The shoes cost Jordan $60 per pair.
c. On June 6, Jordan purchased 120 pairs of tennis shoes on credit. Credit terms were 2/10, n/25. The shoes were purchased at a cost of $40 per pair.
d. On June 10, Jordan paid for the purchase of the basketball shoes and the running shoes in (a).
e. On June 12, Jordan determined that $480 of the tennis shoes were defective. Jordan returned the defective merchandise to the manufacturer.
f. On June 18, Jordan sold 50 pairs of basketball shoes at $110 per pair, 100 pairs of running shoes for $85 per pair, 18 pairs of cross-training shoes for $100 per pair, and 35 pairs of tennis shoes for $65 per pair. All sales were for cash. The cost of the merchandise sold was $11,850.
g. On June 21, customers returned 10 pairs of the basketball shoes purchased on June 18. The cost of the merchandise returned was $750.
h. On June 23, Jordan sold another 20 pairs of basketball shoes, on credit, for $110 per pair and 15 pairs of cross-training shoes for $100 cash per pair. The cost of the merchandise sold was $2,400.
i. On June 30, Jordan paid for the June 6 purchase of tennis shoes less the return on June 12.
j. On June 30, Jordan purchased 60 pairs of basketball shoes, on credit, for $75 each. The shoes were shipped F.O.B. destination and arrived at Jordan on July 3.
RECORDING SALE AND PURCHASE TRANSACTIONS