P5-1B Book Nook Warehouse distributes hardcover books to retail stores and extends tory consisted of books purchased for E1.800. During June, the following merchandising credit terms of 2/10,n/30 to all of its customers. At the end of May, Book Nook's inven- transactions occurred. June 1 Purchased books on account for UNDUNDUND,850 from Phantom Publishers , FOB destination, terms 2/10,n/30 The appropriate party also made a cash payment of UND50 for the freight on this date. 3 Sold books on account to Ex Libris for UND2,500 The cost of the books sold was R1,440 6 Received UND150 credit for books returned to Phantom Publishers. 9 Paid Phantom Publishers in full, less discount. 15 Received payment in full from Ex Libris. 17 Sold books on account to Bargain Books for UND1,800 The cost of the books sold was UND1,020. 20 Purchased books on account for UND1,500 from Bookem Publishers FOB destination, terms 2/15,n/30. The appropriate party also made a cash payment of UND50 for the freight on this date. 24 Received payment in full from Bargain Books 26 Paid Bookem Publishers in full, less discount.

To determine the ending inventory for Book Nook Warehouse at the end of June, we need to account for the purchases, sales, and payments made during the month. We will use the FIFO (First-In, First-Out) method to calculate the cost of goods sold (COGS) and ending inventory.<br /><br />1. Calculate the total purchases for June:<br /> - June 1: Purchased books on account for $1,850 from Phantom Publishers<br /> - June 20: Purchased books on account for $1,500 from Bookem Publishers<br /><br /> Total purchases = $1,850 + $1,500 = $3,350<br /><br />2. Calculate the total sales for June:<br /> - June 3: Sold books on account to Ex Libris for $2,500<br /> - June 17: Sold books on account to Bargain Books for $1,800<br /><br /> Total sales = $2,500 + $1,800 = $4,300<br /><br />3. Calculate the cost of goods sold (COGS) using the FIFO method:<br /> - The beginning inventory consisted of books purchased for $800.<br /> - The cost of the books sold on June 3 was $1,440.<br /> - The cost of the books sold on June 17 was $1,020.<br /><br /> Total COGS = $1,440 + $1,020 = $2,460<br /><br />4. Calculate the ending inventory:<br /> - Total purchases = $3,350<br /> - Total sales = $4,300<br /> - Total COGS = $2,460<br /><br /> Ending inventory = Total purchases - Total sales + Total COGS<br /> Ending inventory = $3,350 - $4,300 + $2,460 = $1,510<br /><br />Therefore, the ending inventory for Book Nook Warehouse at the end of June is $1,510.