Baker Department Store uses a perpetual inventory system. Prepare journal entries to record the following transactions for Baker.
a. Baker bought ten stoves from a manufacturer on account, at a cost of $300 each.
b. Baker returned two of the stoves to the manufacturer because they were defective.
c. Baker sold a stove to a customer for $650 cash.
d. Baker paid the manufacturer for the stoves.

Question

Baker Department Store uses a perpetual inventory system. Prepare journal entries to record the following transactions for Baker.
a. Baker bought ten stoves from a manufacturer on account, at a cost of $300 each. 
b. Baker returned two of the stoves to the manufacturer because they were defective.
c. Baker sold a stove to a customer for $650 cash.
d. Baker paid the manufacturer for the stoves.

Quizplus · Accepted Answer

The Answer of Baker Department Store uses a perpetual inventory system. Prepare journal entries to record the following transactions for Baker.
a. Baker bought ten stoves from a manufacturer on account, at a cost of $300 each. 
b. Baker returned two of the stoves to the manufacturer because they were defective.
c. Baker sold a stove to a customer for $650 cash.
d. Baker paid the manufacturer for the stoves.

Baker Department Store Uses a Perpetual Inventory System