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P5-1A Kern's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Kern's inventory con- sisted of boks purchased for $1,800, During June, the following merchandsing transac- occurred. tions June 1 Purchased books on account for $1,600 from Binsfeld Publishers, FORB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date. Sold books on account to Reading Rainbow for $2.500. The cost of the book sold was $1,440. Received $100 credit for books returned to Binsfeld Publishers. Paid Binsfeld Publishers in full, less discount. Received payment in full from Reading Rainbow. Sold books on account to Rapp Books for $1,800. The cost of the books sold was $1,080. Purchased books on account for $1,800 from McGinn Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $60 for the freight on this date. Received payment in full from Rapp Books. Paid McGinn Publishers in full, less discount. Sold books on account to Baeten Bookstore for $1,600. The cost of the books sold was $970. Granted Baeten Bookstore $120 credit for books returned costing $72. 3 6 9 15 17 20 24 26 28 30 of accounts includes the following: No. 101 Cash, No. 112 201 Accounts Payable, No. 401 Sales Reve- Kern's Book Warehouse's chart Accounts Receivable, No. 120 Inventory, No. nue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Instructions Journalize the transactions for the month of June for Kern's Book Warehouse using a per- petual inventory system

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