On June 1, Grill Master Ltd. had an inventory of 10 barbeques at a cost of $440 each. Grill Master uses a periodic inventory system. During the month of June the following transactions occurred:
Jun 3 Purchased 25 barbeques at a cost of $440 each from BBQ King Ltd., terms n/30.
5 Paid $200 freight for the barbeques purchased on June 3.
6 Sold 12 barbeques to Outdoor Grill for $760 each, term n/30. The returns estimate was 5%.
7 Received credit from BBQ King for the return of two defective barbeques.
13 Issued a credit to Outdoor Grill for the return of one defective barbeque.
16 Received a credit from BBQ King for the defective barbeque returned by Outdoor Grill.
19 Purchased 10 barbeques from Backyard Barbecues at a cost of $440 each, terms 2/10, n/30.
20 Paid freight of $200 on the June 19 purchase.
On June 30, Grill Masters ending inventory was $6,440
Instructions
(a) Prepare journal entries to record the above transactions.
and explanations!
