Question

Journal.

Problem 5-01A (Part Level Submission) Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Cranes' ledger showed Cash of $8,300 and Common Stock of $8,300. May 1 Purchased merchandise on account from Black Wholesale Supply for $8,300, terms 1/10, n/30. 2 Sold merchandise on account for $4,700, terms 2/10, n/30. The cost of the merchandise sold was $3,600. 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 $3,300. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2,700, 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 $108. The returned merchandise had cost $82. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $857.

Answer 1

Date	Account Titles and Explanation	Debit	Credit
May 1	Inventory	8,300
	Accounts Payable		8,300
	(To record purchase of merchandise)
May 2	Accounts Receivable	4,700
	Sales Revenue		4,700
	(To record credit sales)
May 2	Cost of Goods Sold	3,600
	Inventory		3,600
	(To record cost of merchandise sold)
May 5	Accounts Payable	200
	Inventory		200
	(To record merchandise return)
May 9	Cash	4,606
	Sales Discounts	94		(4,700 x 2%)
	Accounts Receivable		4,700
	(To record receive collection )