Accounting - Tennessee Valley Book Warehouse (TVBW)

1. Tennessee Valley Book Warehouse (TVBW) distributes hardcover books to retail stores and extends credit terms of 2/10, n/30toall of its customers. At the end of March, TVBW’s inventory consisted of books purchased for $18,000. During April, the following merchandising transactions took place:
April 1 - Purchased books on account for $7,600 from River Publishers, FOB destination terms 2/20, n/30. The appropriate party also made the cash payment in the amount of $50 for the freight on this date.
April 4 - Sold books on account to the Reader’s Shoppe for $11,200. The cost of the books sold was $6,850.
April 5 - Received $700 credit for book returned to River Publishers.
April 10 – Paid River Publishers in full less discount.
April 13 – Received payment in full from the Reader’s Shoppe.
April 27 - Sold books on account to the Roane Reader for $3,850. The cost of the books sold was $1,925.
April 30 - Granted Roane Reader $200 credit for books returned costing $100.
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