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

Exercise 20

Accounting for Inventory Purchase Transactions Including Allowances and Discounts Using a Perpetual Inventory System
Use the information in PB6-6 (page 298 in Chapter 6) to complete the following requirements.
Required:
1. Indicate the effect (direction and amount) of each transaction on the Inventory balance of Sports R Us.
2. Prepare the journal entries that Sports R Us would record and show any computations.