Question

--/3 Question 2 View Policies Current Attempt in Progress At the beginning of the current season on April 1, the ledger of Blossom Pro Shop showed Cash $3,055; Inventory $4,055; and Common Stock $7,110. The following transactions occurred during April 2022. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,665, terms 3/10, 1/60. 7 Paid freight on Arnie Co, purchases $89. 9 Received credit from Arnie Co. for merchandise returned $365. 10 Sold merchandise on account to members $1,487, terms /30. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $921, terms 2/10, 1/30. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $121. 20 Made sales on account to members $899. terms n/30. 21 Paid Woods Sportswear in full. 27 Granted credit to members for clothing that did not fit properly $89. 30 Received payments on account from members $1,354.

Answer 1

Prepare journal entries as follows using periodic:

Date	General Journal	Debit	Credit
Apr. 05	Purchase	$1,665
	Accounts payable-Arnie co.		$1,665
Apr. 07	Freight-in	$89
	Cash		$89
Apr. 09	Accounts payable-Arnie co.	$365
	Purchase return and allowance		$365
Apr. 10	Accounts receivable	$1,487
	Sales revenue		$1,487
Apr. 12	Purchase	$921
	Accounts payable-wood sportswear		$921
Apr. 14	Accounts payable-Arnie co. ($1665 - $365)	$1,300
	Purchase discount ($1300 × 3%)		$39
	Cash		$1,261
Apr. 17	Accounts payable-wood sportswear	$121
	Purchase return and allowance		$121
Apr. 20	Accounts receivable	$899
	Sales revenue		$899
Apr. 21	Accounts payable-wood sportswear ($921-$121)	$800
	Purchase discount ($800 × 2%)		$160
	Cash		$640
Apr. 27	Sales return and allowances	$89
	Accounts receivable		$89
Apr. 30	Cash	$1,354
	Accounts receivable		$1,354

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Prepare T-accounts as follows:

Cash
Beg. Bal.	$3,055	Apr. 07	$89
Apr. 30	$1,354	Apr. 14	$1,261
		Apr. 21	$640
End. Bal.	$2,419
Accounts receivable
Apr. 10	$1,487	Apr. 27	$89
Apr. 20	$899	Apr. 30	$1,354
End. Bal.	$943
Inventory
Beg. Bal.	$4,055
End. Bal.	$4,055
Accounts payable
Apr. 09	$365	Apr. 05	$1,665
Apr. 14	$1,300	Apr. 12	$921
Apr. 17	$121
Apr. 21	$800
		End. Bal.	$0
Common stock
		Beg. Bal.	$7,110
		End. Bal.	$7,110
Sales revenue
		Apr. 10	$1,487
		Apr. 20	$899
		End.bal.	$2,386
Sales and return and allowances
Apr. 27	$89
End. Bal.	$89
Purchase
Apr. 05	$1,665
Apr. 12	$921
End. Bal.	$2,586
Purchase return and allowances
		Apr. 09	$365
		Apr. 17	$121
		End. Bal.	$486
Purchase discount
		Apr. 14	$39
		Apr. 21	$160
		End. Bal.	$199
Freight-in
Apr. 07	$89
End. Bal.	$89

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Prepare Trial balance as follows:

Trial balance
Cash	$2,419
Accounts receivable	$943
Inventory	$4,055
Purchase	$2,586
Purchase return and allowances		$486
Purchase discount		$199
Accounts payable	$0
Sales revenue		$2,386
Sales and return allowances	$89
Common stock		$7,110
Freight-in	$89
Total	$10,181	$10,181

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Prepare income statement as follows:

Income statement
Sales revenue	$2,386
Less: Sales and retuen allowances	($89)
Net sales		$2,297
Other income:
Purchase discount received		$199
Total revenue		$2,496
Expenses:
Purchase	$2,586
Less: Purchase return and allowances	($486)
Net purchase	$2,100
Add: Beginning inventory	$4,055
less: Closing inventory	($4,732)
COGS		$1,423
Less: Freight in		$89
Net Profit		$984