Question

Ayayai Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Ayayai's ledger showed Cash of $7,600 and Common Shares of $7,600. May 1 Purchased merchandise on account from Hilton Wholesale Supply for $7,600, terms 2/10, n/30. 2 Sold merchandise on account for $4,800, terms 3/10, n/30. The cost of the merchandise sold was $3,100. 5 Received credit from Hilton Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Hilton Wholesale Supply in full, less discount. 11 Purchased supplies for cash $810. 12 Purchased merchandise for cash $2,590. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Northern Distributors for $2,300, terms 2/10, n/30. 19 Paid freight on May 17 purchase $230. 24 Sold merchandise for cash $5,850. The cost of the merchandise sold was $4,140. 25 Purchased merchandise from Toolware Inc. for $740, terms 3/10, n/30. 27 Paid Northern Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $130. The returned merchandise was returned to inventory and had cost $100. 31 Sold merchandise on account for $1,180, terms n/30. The cost of the merchandise sold was $880.

Answer 1

Answer -

Date	General Journal	Debit ($)	Credit ($)
May 1	Merchandise inventory Accounts payable	7600 -	- 7600
May 2	Accounts receivable Sales	4800 -	- 4800
May 2	Cost of goods sold Merchandise inventory	3100 -	- 3100
May 5	Accounts payable Merchandise inventory	200 -	- 200
May 9	Cash [Difference] Sales discounts [$4800 * 3%] Accounts receivable	4656 144 -	- - 4800
May 10	Accounts payable Merchandise inventory [$7400 * 2%] Cash [Difference]	7400 - -	- 148 7252
May 11	Supplies Cash	810 -	- 810
May 12	Merchandise inventory Cash	2590 -	- 2590
May 15	Cash Merchandise inventory	230 -	- 230
May 17	Merchandise inventory Accounts payable	2300 -	- 2300
May 19	Merchandise inventory Cash	230 -	- 230
May 24	Accounts receivable Sales	5850 -	- 5850
May 24	Cost of goods sold Merchandise inventory	4140 -	- 4140
May 25	Merchandise inventory Accounts payable	740 -	- 740
May 27	Accounts payable Merchandise inventory [$2300 * 2%] Cash [Difference]	2300 - -	- 46 2254
May 29	Sales returns and allowances Cash	130 -	- 130
May 29	Merchandise inventory Cost of goods sold	100 -	- 100
May 31	Accounts receivable Sales	1180 -	- 1180
May 31	Cost of goods sold Merchandise inventory	880 -	- 880