Question

Problem 5-01A Sandhill Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Sandhills’ ledger showed Cash of $9,100 and Common Stock of $9,100. May 1 Purchased merchandise on account from Black Wholesale Supply for $9,100, terms 1/10, n/30. 2 Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold was $4,400. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 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 $900. 12 Purchased merchandise for cash $4,100. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $3,500, terms 2/10, n/30. 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100. 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 merchandise $118. The returned merchandise had cost $98. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $794.

Journ

Answer 1

Answer:

Date	Account Titles and Explanations	Debit	Credit
May 1	Inventory	9100
	Accounts Payable		9100
	(To record the purchase of inventory)
May 2	Accounts Receivable	5500
	Sales Revenue		5500
	(To record the credit sales)
	Cost of goods sold	4400
	Inventory		4400
	(To record the cost of goods sold)
May 5	Accounts Payable	200
	Inventory		200
	(To record the inventory returned)
May 9	Cash (5500-110)	5390
	Sales Discounts (5500*2%)	110
	Accounts Receivable		5500
	(To record the amount received from customers)
May 10	Accounts Payable (9100-200)	8900
	Inventory (8900*1%)		89
	Cash (8900-89)		8811
	(To record the amount paid to Black wholesale)
May 11	Supplies	900
	Cash		900
	(To record the supplies
May 12	Inventory	4100
	Cash		4100
	(To record the inventory purchased for cash)
May 15	Cash	230
	Inventory		230
	(To record the inventory returned)
May 17	Inventory	3500
	Accounts Payable		3500
	(To record the credit purchase)
May 19	Inventory	250
	Cash		250
	(To record the freight paid)
May 24	Cash	5500
	Sales Revenue		5500
	(To record the cash sales)
	Cost of goods sold	4100
	Inventory		4100
	(To record the cost of goods sold)
May 25	Inventory	800
	Accounts Payable		800
	(To record the inventory purchased)
May 27	Accounts Payable	3500
	Inventory (3500*2%)		70
	Cash (3500-70)		3430
	(To record the amount paid after discount)
May 29	Sales returns and allowances	118
	Cash		118
	(To record the sale returns)
	Inventory	98
	Cost of goods sold		98
	(To record the cost of goods returned)
May 31	Accounts Receivable	1280
	Sales Revenue		1280
	(To record the sales revenue)
	Cost of goods sold	794
	Inventory		794
	(To record the cost of goods sold)