Question

Problem SA-10A &- Flint Hardware Store completed the following merchandising transactions in the month of May. At the be g of the edger Flint showed Cash of $4.500 and Owner's Capital of $4,500 May 1 Purchased merchandise on account from Gray's Wholesale Supply $3.500, terms 2/10, 30 2 Sold merchandise on account $2.600, terms 1/10, 130. The cost of the merchandise sold was $1.500 Received credit from Grey's Wholesale Supply for merchandise returned $300 9 Received collections in les discounts, from customers billed on les of $2.500 on May 2 10 Paid Gray's Wholesale Supply in fulles discount 11 Purchased supplies for cash $300 12 Purchased merchandise for cash $1,300. 15 Received refund for poor quality merchandise from supplier on cash purchase $180 17 Purchased merchandise from Amland Distributors $1,100, FOB shipping point tems 2/10, 1/30 19 Paid freight on May 17 purchase $110. 24 Sold merchandise for cash $3,600. The merchandise sold had a cost of $1,900 25 Purchased merchandise from Horvath, Inc. 5670, FOB destination, terms 2/10, 1/30 27 Paid Amland Distributors in full, les discount 29 Made refunds to cash customers for defective merchandise $50. The remed merchandise had a value of 530 31 Seid merchandise on account $1.000 terms 30. The cost of the merchandse sold was $450 e Flint Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Account Receiv Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Raven 412 Ses 414 Sales Discounts and NOSOS Cost of Goods Sold 125 120 and w s e Journalize the transactions using a perpetual inventory system (Credit accounties are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account s and enter for the amounts.) 255 PM

Answer 1

Answer:

Date	Account title	Debit ($)	Credit ($)
may 1	Inventory	3500
	Accounts payable		3500
	[Purchased merchandise on credit]]
2	Accounts receivable	2600
	sales		2600
	[sold inventory on credit]
	Cost of goods sold	1500
	Inventory		1500
	[being cost of goods sold recorded]
5	Accounts payable	300
	Inventory		300
	[Being merchandise returned recorded]
9	cash	2574
	Discount allowed    [2600*.01]	26
	Accounts receivable		2600
	[being receivables collected and discount allowed]
10	Accounts payable    [3500-300]	3200
	Discount received   [3200*.02]		64
	Cash                    [3200-64]		3136
	[being amount paid to suppliers recorded]
11	supplies	300
	cash		300
	[supplies purchased]
12	Inventory	1300
	cash		1300
	[merchanidse purchased for cash ]
15	cash	180
	Inventory		180
	[Being amount refund for poor quality ]
17	Inventory	1100
	accounts payable		1100
	[Purchase merchandise on credit ]
19	Inventory	110
	cash		110
	[Paid freight on purchase of inventory]
24	cash	3600
	sales		3600
	[cash sales recorded
	cost of goods sold	1900
	Inventory		1900
	[Cost of goods sold recorded]
25	Inventory	670
	Accounts payable		670
	[Purchase inventory on credit]
27	Accounts payable	1100
	Discount received    [1100*.02]		22
	cash                   [1100-22]		1078
	[being amount paid to suppliers net of discount recorded]
29	Sales /sales return	50
	cash		50
	[being cash returned to customers for sales return]
	Inventory	30
	cost of goods sold		30
	[ being cost of inventory returned credited]
31	accounts receivable	1000
	sales		1000
	[sales on credit recorded]
	cost of goods sold	450
	Inventory		450
	[Cost of goods sold recorded]