On September 1, Rhea Office Supply had an inventory of 30 calculators at a cost...
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On September 1, Rhea Office Supply had an inventory of 30 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept. 6 Purchased 70 calculators at $22 each from Danny Co. for cash. 9 Paid freight of $70 on calculators purchased from Danny Co. 10 Returned 2 calculators to Danny Co. for $46 credit (including freight) because they did not meet specifications. 12 Sold 33 calculators (30 costing $20, and 3 costing $23 including freight) for $33 each to Great Big Book Store, terms n/30. 14 Granted credit of $33 to Great Big Book Store for the return of one calculator that was not ordered 20 Sold 40 calculators costing $23 for $33 each to Bush's Card Shop, terms n/30. Instructions: a) Journalize the September transactions. b) What amount would Rhea report as net sales in the September income statement? c) What amount would Rhea report as gross profit in the September income statement
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