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Question
On October 1, Freed Supply had an inventory of 15 backpacks at a cost of $20 each. The company uses a perpetual inventory system. During October, the following transactions and events occurred.
Oct. 4 Purchased 70 backpacks at $20 each from hunters, terms 2/10, n/30.
Oct. 6 Received credit of $100 for the return of 5 backpacks purchased on Oct. 4 that were defective.
Oct. 9 Sold 40 backpacks for $35 each to Oliver Books, terms 2/10, n/30.
Oct. 13 Sold 15 backpacks for $35 each to Heller Office Supply, terms n/30.
Oct. 14 Paid Hunter in full, less discount.
Journalize the October transactions for Freed Supply.
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