Question

Question 2 View Policies Current Attempt in Progress At the beginning of the current season on April 1, the ledger of Crane Pro Shop showed Cash $2,910; Inventory $3.500, and Common Stock $6,410. The following transactions were completed during April 2022 Apr.5 Purchased golf bags, clubs, and balls on account from Arnie Co $1,900, terms 3/10, 1/60 7 Paid freight on Arnie purchase $80. 9 Received credit from Arnie Co. for merchandise returned $500. 10 Sold merchandise on account to members $1,200, terms n/30. The merchandise sold had a cost of $320. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1.070, terms 1/10,30. 14 Pald Arnie Co, in full 17 Received credit from Woods Sportswear for merchandise returned $70. 20 Made sales on account to members $970, terms 30. The cost of the merchandise sold was $550, 21 Pald Woods Sportswear in full. 27 Granted an allowance to members for clothing that did not fit properly $75. 30 Received payments on account from members $1.150. Journalize the April transactions using a perpetual Inventory system. if ne entry is required, select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Journal Entries:

Date	Account title and Explanation	Debit	Credit
Apr.5	Inventory	$1,900
	Accounts payable		$1,900
	[To record purchase of inventory on account]
Apr.7	Inventory	$500
	Cash		$500
	[To record payment of freight]
Apr.9	Accounts payable	$500
	Inventory		$500
	[To record purchase returns]
Apr.10	Accounts receivable	$1,200
	Sales revenue		$1,200
	[To record credit sales]
	Cost of goods sold	$820
	Inventory		$820
	[To record cost of goods sold]
Apr.12	Inventory	$1,070
	Accounts payable		$1,070
	[To record purchase of inventory on account]
Apr.14	Accounts payable [1,900-500]	$1,400
	Inventory [1,400 x 3%]		$42
	Cash		$1,358
	[To record cash paid for accounts payable]
Apr.17	Accounts payable	$70
	Inventory		$70
	[To record purchase returns]
Apr.20	Accounts receivable	$970
	Sales revenue		$970
	[To record credit sales]
	Cost of goods sold	$550
	Inventory		$550
	[To record cost of goods sold]
Apr.21	Accounts payable [1,070-70]	$1,000
	Inventory [1,000 x 1%]		$10
	Cash		$990
	[To record cash paid for accounts payable]
Apr.27	Sales returns and allowance	$75
	Accounts receivable		$75
	[To record allowance given to customers]
Apr.30	Cash	$1,150
	Accounts receivable		$1,150
	[To record collections from customers]

T-Accounts:

Cash
Beg.	$2,910	Apr.7	$500
Apr.30	$1,150	Apr.14	$1,358
		Apr.21	$990
End.	$1,212
Accounts receivable
Apr.10	$1,200	Apr.27	$75
Apr.20	$970	Apr.30	$1,150
End.	$945
Inventory
Beg.	$3,500	Apr.9	$500
Apr.5	$1,900	Apr.10	$820
Apr.7	$500	Apr.14	$42
Apr.12	$1,070	Apr.17	$70
		Apr.20	$550
		Apr.21	$10
End.	$4,978
Accounts payable
Apr.9	$500	Apr.5	$1,900
Apr.14	$1,400	Apr.12	$1,070
Apr.17	$70
Apr.21	$1,000
		End.	$0
Common stock
		Beg.	$6,410
		End.	$6,410
Sales revenue
		Apr.10	$1,200
		Apr.20	$970
		End.	$2,170
Sales returns and allowances
Apr.27	$75
End.	$75
Cost of goods sold
Apr.10	$820
Apr.20	$550
End.	$1,370

Trial Balance:

CRANE PRO SHOP
Trial Balance
April 30,2020
Cash	$1,212
Accounts receivable	$945
Inventory	$4,978
Accounts payable		$0
Common stock		$6,410
Sales revenue		$2,170
Sales returns and allowances	$75
Cost of goods sold	$1,370
Total	$8,580	$8,580