1. 6.3 Review the following tr
January 18th, 2023
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.
Answer:
| 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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