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Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred.
Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred. May 13 - Sold 8 motors at a cost of $45 each to Scruffy Brothers Supply Company, terms 4/10, n/30. The motors cost Charlie $26 each.
May 16 - One defective motor was returned to Charlie.
May 23 - Received payment in full from Scruffy Brothers.
Journalize the May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)
Final answer:The transactions werejournaledfollowing the specifics of each date, including sales, revenue, cost of goods sold, inventory adjustments, sales returns and allowances, and receiving payment.Explanation:The transactions for Charlie Company in May under a perpetual inventory system would be recorded as follows:May 13: Sales (8 x $45) - Revenue - $360, Accounts Receivable - $360, Cost of Goods Sold (8 x $26) - $208 and Inventory - $208.May 16: Sales Returns and Allowances - $45, Accounts Receivable - $45, Inventory - $26 and Cost of Goods Sold - $26.May 23: Cash - $315 ($360 - 4% discount of $360 = $345.60, rounded up to $315) and Sales Discounts - $45, Accounts Receivable - $360.Learn more about Perpetual Inventory System here:brainly.com/question/32571771#SPJ11...