1. 6.3 Review the following tr

1. 6.3 Review the following transactions for Birdy Birdhousesand record any required journal entries.

Sep. 6 Birdy Birdhouses purchases 55 birdhouses at $40 each withcash.

Sep. 8 Birdy Birdhouses purchases 80 birdhouses at $45 each oncredit. Terms of the purchase are 2/10, n/30, invoice dateSeptember 8.

Sep. 10 Birdy discovers 10 of the birdhouses are damaged fromthe Sept 6 purchase and returns them to the supplier for a fullrefund. Birdy also discovers that 10 of the birdhouses from theSept 8 purchase are painted the wrong color but keeps them sincethe supplier granted an allowance of $20 per birdhouse.

Sep. 18 Birdy pays their account in full from the September 8purchase, less any returns, allowances, and/or discounts.


Periodic Inventory System:
Date AccountTitles Debit $ Credit $
Sep.6 Purchases       2,200
Cash       2,200
(55 x 40 )
Sep.8 Purchases       3,600
Accounts Payable       3,600
(80 x 45 )
Sep.10 Cash          400
Purchase return &allowances          400
(10 x 40 )
Sep.10 Accounts Payable          200
Purchase return &allowances          200
(10 x 20 )
Sep.18 Accounts Payable ( 3,600 – 200)       3,400
Purchase discount            68
Cash       3,332
Perpetual InventorySystem
Date AccountTitles Debit $ Credit $
Sep.6 Inventory 2,200
Cash     2,200
(55 x 40 )
Sep.8 Inventory 3,600
Accounts Payable     3,600
(80 x 45 )
Sep.10 Cash      400
Inventory       400
(10 x 40 )
Sep.10 Accounts Payable      200
Inventory       200
(10 x 20 )
Sep.18 Accounts Payable ( 3,600 – 200) 3,400
Inventory         68
Cash     3,332

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