Journal entries — perpetual inventory system
LO3, 4 On 28 February 2019, Darwin‐based entity, Phonee Partners, had inventory of 480 phones at a total cost of $153 600. The business maintains a perpetual inventory system. The following transactions occurred during March 2019.
5 Sold 325 phones on credit to Phone Phanatics for $650 each.
8 Received $1680 credit for 6 damaged phones returned to Sutherland Electronics.
11 Paid Sutherland Electronics in full, less discount. Received payment in full from Phone Phanatics.
18 Sold 60 phones on credit to Kingsford Phones for $620 each; terms 2/10, n/30.
20 Purchased 80 phones on credit for $280 each from Oakhurst International, EXW Melbourne, terms 2/15, n/30. Oakhurst International also made a cash payment of $160 for freight on this date.
24 Received payment in full from Kingsford Phones, less discount.
26 Paid Oakhurst International in full, less discount.
29 Sold 98 phones on credit to Hinchinbrook Phone Shop for $650 each.
31 Granted Hinchinbrook Phone Shop $4550 credit for 7 phones returned, which cost $1960.
Phonee Partners’ chart of accounts contained the following accounts: Cash at Bank, Sales, Accounts Receivable, Discount Allowed, Inventory, Sales Returns and Allowances, Accounts Payable, Cost of Sales, Discount Received.
Required (a) Prepare journal entries for the above transactions for the month of March 2019 for Phonee Partners.