Secure https://edugen.wileyplus.com/edugen/student/mainfr.uni S Kimmel, Accounti
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Secure https://edugen.wileyplus.com/edugen/student/mainfr.uni S Kimmel, Accounting, oe ractice Gradebook ORION Downloadable eTextbook nment Problem 5-1A Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters May 1 Purchased merchandise on account from Black Wholesale Supply for $7.850, terms 1/10, n/30. 2 Sold merchandise on account for $4,000, terms 2/10, n/30. The cost of the merchandise sold was $3,000. 5 Received credit from Black Wholesale Supply for merchandise returned $450. 9 Received collections in full, less discounts, from customers billed on May 2 10 11 12 15 17 19 Paid Black Wholesale Supply in full, less discount. Purchased supplies for cash $900. Purchased merchandise for cash $3,100. Received $230 refund for return of poor- quality merchandise from supplier on cash purchase. Purchased merchandise from Wilhelm Distributors for $2,800, terms 2/10, n/30. Paid freight on May 17 purchase $250. 24 Sold merchandise for canl s, soo, The cost of the merchandse sold was $4,00. 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10, n/30 27 Paid wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned m 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $830. erchandise $150. The returned merchandise had cost s98. the transactions using a perpetual inventory system. (It no entry is required, select "No Entry" for the account tit Journalize manually. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit All Rights Reserved. A Division of John Wiley &Sens; IncExplanation / Answer
Winters Hardware Store Journal Entries 31st May Date General Journal Debit Credit 1-May Merchandise Inventory $ 7,850.00 To Accounts Payable $ 7,850.00 Being amount of Mercendise Inventory purchased from Black wholesale Supply) 2-May Accounts Receivable $ 4,000.00 To Sales $ 4,000.00 (Being amount of on account sales) 2-May Cost of goods sold $ 3,000.00 To Mercendise Inventory $ 3,000.00 (Being amount of cost of goods sold) 5-May Acounts Payable $ 450.00 To Merchandise Inventory $ 450.00 (Being amount of received credit from Black Wholesale supply) 9-May Cash=($4000*98%) $ 3,920.00 Sales Discount=($4000*2%) $ 80.00 To Accounts Receivable $ 4,000.00 (Being amount received from customer after deducting discount) 10-May Accounts Payable=($7850-$450) $ 7,400.00 To Cash=($7400*99%) $ 7,326.00 To Merchandise Inventory=($7400*1%) $ 74.00 (Being amount paid to Black Wholsale Supply ) 11-May Supplies $ 900.00 To Cash $ 900.00 (Being amount of Supplies Purchased) 12-May Merchandise Inventory $ 3,100.00 To cash $ 3,100.00 (Being amount of Merchandise Purchased) 15-May Cash $ 230.00 To Merchandise Inventory $ 230.00 (Being amount of sales return) 17-May Merchandise Inventory $ 2,800.00 To Accounts Payable $ 2,800.00 (Being amount of Merchandise Purchased from Wilhelm distributors)) 19-May Merchandise Inventory $ 250.00 To Cash $ 250.00 (Being amount of freight paid for purchases on May 17th) 24-May Cash $ 5,500.00 To Sales $ 5,500.00 (Being amount of on Cash sales) 24-May Cost of goods sold $ 4,100.00 To Mercendise Inventory $ 4,100.00 (Being amount of cost of goods sold) 25-May Merchandise Inventory $ 800.00 To Accounts Payable $ 800.00 (Being amount of Merhandise purhased from Clasps Inc.) 27-May Accounts Payable=($2800+250) $ 3,050.00 To Cash=(2800*98%) $ 2,994.00 To Merchandise Inventory=($2800*2%) $ 56.00 (Being amount Paid to Wilhelm distributor) 29-May Sales return & allowances $ 150.00 To Cash $ 150.00 (Being amount of Sales Return) 29-May Merhandise Inventory $ 98.00 To Cost of goods sold $ 98.00 (Being amount of returned Mercchandise cost) 31-May Accounts Receivable $ 1,280.00 To Sales $ 1,280.00 (Being amount of on Cash sales) 31-May Cost of goods sold $ 830.00 To Mercendise Inventory $ 830.00 (Being amount of cost of goods sold) Accounts Receivable Date Particular Amount Date Particular Amount 2-May To Sales $ 4,000.00 9-May By Cash $ 3,920.00 31-May To Sales $ 1,280.00 9-May By Sales discount $ 80.00 By Bal c/d $ 1,280.00 Total $ 5,280.00 $ 5,280.00 Accounts Payable Date Particular Amount Date Particular Amount 5-May To Merchandise Inventory $ 450.00 1-May By Merchandise Inventory $ 7,850.00 10-May To Cash $ 7,326.00 17-May By Merchandise Inventory $ 2,800.00 10-May To Merchandise Inventory $ 74.00 31-May By Bal c/d $ 500.00 17-May To Cash $ 250.00 27-May To Cash $ 2,994.00 27-May To Merchandise Inventory $ 56.00 Total $ 11,150.00 Total $ 11,150.00 Merchandise Inventory Date Particular Amount Date Particular Amount 1-May To Accounts payable $ 7,850.00 2-May By Cost of goods sold $ 3,000.00 12-May To Cash $ 3,100.00 5-May By Accounts Payable $ 450.00 17-May To Accounts payable $ 2,800.00 10-May By Accounts Payable $ 74.00 19-May To Cash $ 250.00 15-May By cash $ 230.00 25-May To Accounts payable $ 800.00 24-May By Cost of goods sold $ 4,100.00 29-May To Cost of goods sold $ 98.00 27-May By Accounts Payable $ 56.00 31-May By Cost of goods sold $ 830.00 By Bal c/d $ 6,158.00 18th April Total $ 14,898.00 Total $ 14,898.00 Cost of goods sold Date Particular Amount Date Particular Amount 2-May To Merchandise Inventory $ 3,000.00 29-May By Merchandise Inventory $ 98.00 24-May To Merchandise Inventory $ 4,100.00 31-May By Balane C/d $ 7,832.00 31-May To Merchandise Inventory $ 830.00 Total $ 7,930.00 Total $ 7,930.00 Sales A/c Date Particular Amount Date Particular Amount 31-May To Bal c/d $ 5,280.00 2-May By Acounts Receivable $ 4,000.00 31-May By Acounts Receivable $ 1,280.00 Total $ 5,280.00 Total $ 5,280.00
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