Please watch the video: https://www.youtube.com/watch?
v=3j-CG84f988 and study the ppt as attached. Key
points to learn are as follows:
1. Gross Margin = Sales – COGS (Cost of Goods Sold)
2. Journal Entries associated with purchase and sales
related transactions.
Chapter 5 Exercises
On September 1, Nixa Office Supply had an inventory of 30
calculators at a cost of $18 each. The company uses a
perpetual inventory system. During September, the
following transactions occurred.
9/6 Purchased 90 calculators at $22 each from York,
terms net/30.
9/9 Paid freight of $90 on calculators purchased from York
Co.
9/10 Returned 3 calculators to York Co. for $69 credit
(including freight) because they did not meet
specifications.
9/12 Sold 26 calculators costing $23 (including freight) for
$31 each to Sura Book Store, terms n/30.
9/14 Granted credit of $31 to Sura Book Store for the
return of one calculator that was not ordered.
9/20 Sold 30 calculators costing $23 for $32 each to
Davis Card Shop, terms n/30.
Instructions
Journalize the September transactions
