Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 14

Accounting for Inventory Purchase Transactions Including Allowances and Discounts Using a Perpetual Inventory System
Use the information in PA6-6 (page 295 in Chapter 6) to complete the following requirements.
Required:
1. Indicate the effect (direction and amount) of each transaction on the Inventory balance of Readers' Comer.
2. Prepare the journal entries that Readers' Corner would record and show any computations.