Question

At the beginning of the current season on April 1, the ledger of Wildhorse Pro Shop showed Cash $3,210; Inventory $3,500; and Common Stock $6,710. The following transactions were completed during April 2022.

At the beginning of the current season on April 1, the ledger of Wildhorse Pro Shop showed Cash $3,210; Inventory $3,500; and Common Stock $6,710. The following transactions were completed during April 2022. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,400, terms 3/10, n/60. 7 Paid freight on Arnie purchase $80. 9 Received credit from Arnie Co.for merchandise returned $300. 10 Sold merchandise on account to members $1,270, terms n/30. The merchandise sold had a cost of $910. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,060, terms 2/10, n/30. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $60. 20 Made sales on account to members $800, terms n/30. The cost of the merchandise sold was $550. 21 Paid Woods Sportswear in full. 27 Granted an allowance to members for clothing that did not fit properly $90. 30 Received payments on account from members $1,120.

Answer 1

Wildhorse Pro Shop Journal entries Date Account 5-Apr Inventory Accounts Payable Credit Calculation Debit $ 1,400 $ 1,400 $ 80 7-Apr Inventory Cash $ 80 $ 300 9-Apr Accounts Payable Inventory $ 300 $ 1,270 10-Apr Accounts Receivable Sales revenue $ 1,270 $ 910 10-Apr Cost of goods sold Inventory $ 910 $ 1,060 12-Apr Inventory Accounts Payable $ 1,060 $ 1,100 =1,400-300 14-Apr Accounts Payable Cash Inventory $ $ 1,067 33 =1,100*3% $ 60 17-Apr Accounts Payable Inventory $ 60 $ 800 20-Apr Accounts Receivable Sales revenue $ 800 $ 550 20-Apr Cost of goods sold Inventory $ 550 $ 1,000 =1,060-60 21-Apr Accounts Payable Cash Inventory $ $ 980 20 =1,000*2% $ 90 27-Apr Sales Returns & Allowances Accounts Receivable $ 90 $ 1,120 30-Apr Cash Accounts Receivable $ 1,120

Wildhorse Pro Shop T Accounts Date Debit Date Credit Cash Op bal $ 3,210 7-Apr $ 80 30-Apr $ 1,120 14-Apr $ 1,067 21-Apr $ 980 Date Debit Date Credit Accounts Receivable 10-Apr $ 1,270 27-Apr $ 90 20-Apr $ 800 30-Apr $ 1,120 Date Debit Date Credit Inventory Op bal $ 3,500 9-Apr $ 300 5-Apr $ 1,400 10-Apr $ 910 7-Apr $ 80 14-Apr $ 33 12-Apr $ 1,060 17-Apr $ 60 20-Apr $ 550 21-Apr $ 20 Date Debit Date Credit Accounts Payable 9-Apr $ 300 5-Apr $ 1,400 14-Apr $ 1,100 12-Apr $ 1,060 17-Apr $ 60 21-Apr $ 1,000 Bal. Bal. S $ 2,203 Common Stock Op bal $ 860 Sales Revenue 10-Apr $ 1,270 20-Apr $ 800 Bal. $ 4,167 Sales Returns & Allowances 27-Apr $ 90 $ 6,710 Bal. Cost of goods sold 10-Apr $ 910 20-Apr $ 550 Bal. $ 6,710 Bal. $ 2,070 Bal. $ 90 Bal. $ 1,460

Credit Wildhorse Pro Shop Trial Balance For the Month Ended April 30, 2022 Account Names Cash Accounts Receivable Inventory Accounts Payable Common Stock Sales revenue Sales Returns & Allowances Cost of goods sold Totals Debit 2,203 860 4,167 6,710 2,070 90 1,460 8,780 8,780

Wildhorse Pro Shop Income Statement (Partial) For the Month Ended April 30, 2022 Revenues Sales revenue Less Sales Returns & Allowances Net Sales Revenue Cost of goods sold Gross Profit 2,070 90 1,980 1,460 520