Winters Hardware Store completed the following merchandising transactions in the

Question

Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters'ledger showed Cash of $9,600 and Common Stock of $ 9,600. May Purchased merchandise on account from Black Wholesale Supply for $8,100, terms 1/10, n/30 2 Sold merchandise on account for $4,900, terms 2/10, n/30. The cost of the merchandise sold was $3,675 5 Received credit from Black Wholesale Supply for merchandise returned $400. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $1,080. 12 Purchased merchandise for cash $3,720. 15 Received $276 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $ 2,850, terms 2/10, n/30. Paid freight on May 17 purchase $300. 24 19 Sold merchandise for cash $ 6.600. The cost of the merchandise sold was $ 4,920 25 Purchased merchandise from Clasps Inc. for $ 960, terms 3/10, n/30 24 25 27 29 Sold merchandise for cash $ 6,600. The cost of the merchandise sold was $4,920 Purchased merchandise from Clasps Inc. for $960, terms 3/10, n/30. Paid Wilhelm Distributors in full, less discount. Made refunds to cash customers for returned merchandise $ 135. The returned merchandise had cost $ 99 Sold merchandise on account for $ 1,536, terms n/30. The cost of the merchandise sold was $ 996. 31

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-May Inventory    8,100.00    Accounts Payable    8,100.00 (To record the credit purchase) 2-May Accounts Receivable    4,900.00    Sales Revenue)    4,900.00 (To record the credit sales) Cost of Goods Sold    3,675.00    Inventory    3,675.00 (To record cost of goods sold) 5-May Accounts Payable       400.00    Inventory       400.00 (To record the purchase return) 9-May Cash ($4,900 x 98%)    4,802.00 Sales Discounts ($4,900 X 2%)          98.00    Accounts Receivable    4,900.00 (To record the cash received) 10-May Accounts Payable    7,700.00    Cash ($7,700 X 99%)    7,623.00    Inventory ($7,700 X 1%)          77.00 (To record the amount paid) 11-May Supplies    1,080.00    Cash    1,080.00 (To record the supplies purchased) 12-May Inventory    3,720.00    Cash    3,720.00 (To record the cash purchase) 15-May Cash       276.00    Inventory       276.00 (To record the cash recd. For poor quality) 17-May Inventory    2,850.00    Accounts Payable    2,850.00 (To record the credit purchase) 19-May Inventory       300.00    Cash       300.00 (To record the freight paid) 24-May Cash    6,600.00    Sales Revenue)    6,600.00 (To record the credit sales) Cost of Goods Sold    4,920.00    Inventory    4,920.00 (To record cost of goods sold) 25-May Inventory       960.00    Accounts Payable       960.00 (To record the credit purchase) 27-Mar Accounts Payable    2,850.00    Cash ($2,850 X 98%)    2,793.00    Inventory ($2,850 X 2%)          57.00 (To record the amount paid) 29-Mar Sales Return & Allowance       135.00    Cash       135.00 (To record the sales returns) Inventory          99.00    Cost of Goods Sold          99.00 (To record the cost of goods sold of returned goods) 31-May Accounts Receivable    1,536.00    Sales Revenue)    1,536.00 (To record the credit sales) Cost of Goods Sold       996.00    Inventory       996.00 (To record cost of goods sold) Answer 2. Cash Accounts Receivable Inventory Beg. Bal.     9,600.00      7,623.00 10-May Beg. Bal.                 -      4,900.00 9-May Beg. Bal.                 -      3,675.00 2-May 9-May     4,802.00      1,080.00 11-May 2-May    4,900.00 1-May    8,100.00       400.00 5-May 15-May         276.00      3,720.00 12-May 31-May    1,536.00 12-May    3,720.00          77.00 10-May 24-May     6,600.00          300.00 19-May 17-May    2,850.00       276.00 15-May      2,793.00 27-Mar 19-May       300.00    4,920.00 24-May          135.00 29-Mar 25-May       960.00          57.00 27-Mar 29-Mar          99.00       996.00 31-May End. Bal.     5,627.00 End. Bal.    1,536.00 End. Bal.    5,628.00 Supplies Accounts Payable Common Stock Beg. Bal.                  -   Beg. Bal.                 -   Beg. Bal.    9,600.00 11-May     1,080.00 5-May       400.00    8,100.00 1-May 10-May    7,700.00    2,850.00 17-May 27-Mar    2,850.00       960.00 25-May End. Bal.     1,080.00 End. Bal.       960.00 End. Bal.    9,600.00 Sales Revenue Sales Return & Allowances Sales Discounts      4,900.00 2-May 29-Mar       135.00 9-May          98.00      6,600.00 24-May      1,536.00 31-May End. Bal.    13,036.00 End. Bal.       135.00 End. Bal.          98.00 Cost of Goods Sold 2-May     3,675.00            99.00 29-Mar 24-May     4,920.00 31-May         996.00 End. Bal.     9,492.00

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.