Date

Transaction

Jul 8

Purchased 500 units at $26 each on account, terms 2/10, net 30.

Jul 10

A portion of the inventory from the above purchase was defective. Grindstone returned 100 units to the supplier.

Jul 12

Sold 300 units to SouthShore on account at $60 per unit plus tax, terms 2/10, net 30.

Jul 14

The customer from Jul 12 returned 30 units that were not needed. Process the return, including sales tax.

Jul 18

The customer from Jul 12  paid their amount owing and claimed their discount. Note the discount is not taken on the sales tax amount.

Jul 22

Purchased 350 units on account at $27 per unit with terms of 3/10, net 30.

Jul 23

Sold 200 units for $60 each plus tax. Received cash.

Jul 25

Took advantage of discount offered and paid up amount owing from the Jul 22 purchase.

Jul 31

Remitted the sales tax owing to the government.

Jul 31

Grindstone provides warranties on the products they sell. They estimate the warranty to be $2 for each item sold (less any returns).