Waters Hardware Store completed the following merchandising transactions in the
ID: 2418207 • Letter: W
Question
Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water’s ledger showed Cash of $9,225 and Common Stock of $9,225.
May 1 Purchased merchandise on account from Hauke Wholesale Supply for $8,200, terms 1/10, n/30. 2 Sold merchandise on account for $5,400, terms 2/10, n/30. The cost of the merchandise sold was $4,050. 5 Received credit from Hauke Wholesale Supply for merchandise returned $600. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Hauke Wholesale Supply in full, less discount. 11 Purchased supplies for cash $1,038. 12 Purchased merchandise for cash $3,575. 15 Received $265 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Friedrich Distributors for $4,000, terms 2/10, n/30. 19 Paid freight on May 17 purchase $288. 24 Sold merchandise for cash $6,342. The cost of the merchandise sold was $4,728. 25 Purchased merchandise from Fasteners Inc. for $922, terms 3/10, n/30. 27 Paid Friedrich Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $132. The returned merchandise had cost $99. 31 Sold merchandise on account for $1,476, terms n/30. The cost of the merchandise sold was $957.Explanation / Answer
Date Title debit credit 1-May Inventory $8,200.00 Account payable $8,200.00 2-May Account receivable $5,400.00 Sales $5,400.00 Cost of goods sold $4,050.00 Inventory $4,050.00 5-May Account payable $600.00 Inventory $600.00 9-May Cash (5400*98%) $5,292.00 Discount on sales $108.00 Account receivable $5,400.00 10-May Account payable $7,600.00 Discount on purchases $76.00 Cash [(8200-600)*99%) $7,524.00 11-May Supplies $1,038.00 Cash $1,038.00 12-May Inventory $3,575.00 Cash $3,575.00 15-May Cash $265.00 Inventory $265.00 17-May Inventory $4,000.00 Account payable $4,000.00 19-May Freight $288.00 Cash $288.00 24-May Cash $6,342.00 Sales $6,342.00 Cost of goods sold $4,728.00 Inventory $4,728.00 25-May Inventory $922.00 Account payable $922.00 27-May Cash ($4000*98%) 3920 Account payable $3,920.00 29-May Sales $132.00 Cash $132.00 Inventory $99.00 Cost of goods sold $99.00 31-May Account receivable $1,476.00 Sales $1,476.00 Cost of goods sold $957.00 Inventory $957.00 Note: No requirement in the question was mentioned. Therefore, as per the information given it was assumed that student need Journl entries for the given transactions.
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