Accounting Paper

A. Printer Supply Company sells computer printers and printer supplies.  One of its products is a toner cartridge for laser printers.  At the beginning of 2011, there were 225 cartridges on hand that cost $62 each. During 2011, Printer Supply purchased 1475 cartridges at $62 each.  After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier.  Printer Supply also sold 830 cartridges at $95 each and sold an additional 710 cartridges at $102 each after a midyear selling price increase.  Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for miscellaneous reasons.  Assume that Printer Supply uses a perpetual inventory system.

1. Prepare summary journal entries to record the purchases, sales, and return of inventory.  Assume that all purchases and sales are on credit but no discounts were offered.  

B. On September 1, 2013, Serrano Company purchased 70 units of Product A for $35,000 cash and also paid $1,500 transportation costs related to this purchase. On the same date, Serrano Company purchased 100 units of Product B for $10,000 on credit; however, the seller paid the $1,200 freight. The credit terms for Product B were 2/10, n/30. On September 3rd, Serrano Company determined that 5 units of Product A were defective, so they were returned to the seller. Serrano Company paid for its purchase of Product B on September 9th. On September 10th, Serrano Company purchased 90 units of Product C for $8,000 on credit with terms 1/10, n/30. The seller paid the freight. Serrano Company paid for its purchase of Product C on September 21st.