Question

Flounder Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Flounder'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 $4,100, terms 3/10,n/30. The cost of the merchandise sold was $3,500. 5 Received credit from Hilton Wholesale Supply for merchandise returned $300. 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 $840. 12 Purchased merchandise for cash $2,840. 15 Received $250 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 $220. 24 Sold merchandise for cash $5,620. The cost of the merchandise sold was $4,400. 25 Purchased merchandise from Toolware Inc. for $790, terms 3/10, n/30. 27 Paid Northern Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $120. The returned merchandise was returned to inventory and had cost $80. 31 Sold merchandise on account for $1,200, terms n/30. The cost of the merchandise sold was $820. Flounder Hardware uses a perpetual inventory system.

Answer 1

	Cash
	1-May	7,600	10-May	7,154
	9-May	3,977	11-May	840
	15-May	250	12-May	2,840
	24-May	5,620	19-May	220
			27-May	2254
			29-May	120
	End bal	4,019
	Accounts receivable
	2-May	4,100	9-May	4,100
	31-May	1,200
	End bal	1,200
	inventory
	1-May	7,600	2-May	3,500
	12-May	2,840	5-May	300
	17-May	2,300	10-May	146
	19-May	220	15-May	250
	25-May	790	24-May	4,400
	29-May	80	27-May	46
			31-May	820
	end bal	4,368
	Supplies
	11-May	840
	end bal	840
	Accounts payable
	5-May	300	1-May	7,600
	10-May	7300	17-May	2,300
	27-May	2,300	25-May	790
			End bal	790
	Common stock
			1-May
			end bal	7,600
	Sales revenue
			2-May	4,100
			24-May	5,620
			31-May	1,200
			End bal	10,920
	Sales return and allowance
	29-May	120
	end bal	120
	Sales discount
	9-May	123
	end bal	123
	Cost of goods sold
	2-May	3,500	29-May	80
	24-May	4,400
	31-May	820
	End bal	8,640