Powell Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,040 (including freight) from Catlin Publishers, terms 2/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $720. 6 Received $40 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $1,200. The cost of the merchandise sold was $730. 20 Purchased books on account for $720 from Priceless Book Publishers, terms 1/15, n/30. 24 Received payment in full from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $780. 30 Granted General Bookstore $130 credit for books returned costing $80. Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places e. g. 15,222.)

01-Jun

Dr Inventory$1,040

Cr Accounts Payable $1,040

03-Jun

Dr Accounts Receivable$1,200

Cr Sales $1,200

03-Jun

Dr Cost of goods sold$720

Cr Inventory $720

06-Jun

Dr Accounts Payable$40

Cr Inventory $40

09-Jun

Dr Accounts Payable$ 1,000

Cr Cash $ 980

Cr Inventory $ 20

15-Jun

DrCash$1,200

Cr Accounts Receivable $1,200

17-Jun

DrAccounts Receivable$1,200

Cr Sales $1,200

17-Jun

Dr Cost of goods sold$730

Cr Inventory $730

20-Jun

Dr Inventory$720

Cr Accounts Payable $720

24-Jun

Dr Cash$1,176

Dr Sales Discounts$ 24

Cr Accounts Receivable $ 1,200

26-Jun

Dr Accounts Payable$720

Cr Cash$ 712.8

Cr Inventory $ 7.2

28-Jun

Dr Accounts Receivable$1,300

Cr Sales $1,300

28-Jun

Dr Cost of goods sold$780

Cr Inventory $780

30-Jun

Dr Sales Returns & Allowances$130

Cr Accounts Receivable $130

30-Jun

Dr Inventory$80

Cr Cost of goods sold $80

Explanation:

Preparation of the Journal entry for the month of June for Powell Warehouse, using a perpetual inventory system

Journal entries

01-Jun

Dr Inventory$1,040

Cr Accounts Payable $1,040

03-Jun

Dr Accounts Receivable$1,200

Cr Sales $1,200

03-Jun

Dr Cost of goods sold$720

Cr Inventory $720

06-Jun

Dr Accounts Payable$40

Cr Inventory $40

09-Jun

Dr Accounts Payable$ 1,000 (1,040-40)

Cr Cash $ 980

Cr Inventory $ 20

(1000*2%)

15-Jun

DrCash$1,200

Cr Accounts Receivable $1,200

17-Jun

DrAccounts Receivable$1,200

Cr Sales $1,200

17-Jun

Dr Cost of goods sold$730

Cr Inventory $730

20-Jun

Dr Inventory$720

Cr Accounts Payable $720

24-Jun

Dr Cash$1,176

(1,200-24)

Dr Sales Discounts$ 24 (1,200*2%)

Cr Accounts Receivable $ 1,200

26-Jun

Dr Accounts Payable$720

Cr Cash$ 712.8

(720-7.2)

Cr Inventory $ 7.2

($720*1%)

28-Jun

Dr Accounts Receivable$1,300

Cr Sales $1,300

28-Jun

Dr Cost of goods sold$780

Cr Inventory $780

30-Jun

Dr Sales Returns & Allowances$130

Cr Accounts Receivable $130

30-Jun

Dr Inventory$80

Cr Cost of goods sold $80

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough