Question

Ayayai Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Ayayai'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 $4,800, terms 3/10, n/30. The cost of the merchandise sold was $3,100. 5 Received credit from Hilton Wholesale Supply for merchandise returned $200. 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 $810. 12 Purchased merchandise for cash $2,590. 15 Received $230 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 $230. 24 Sold merchandise for cash $5,850. The cost of the merchandise sold was $4,140. 25 Purchased merchandise from Toolware Inc. for $740, terms 3/10, n/30. 27 Paid Northern Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $130. The returned merchandise was returned to inventory and had cost $100. 31 Sold merchandise on account for $1,180, terms n/30. The cost of the merchandise sold was $880.

Answer 1

Answer:

Cash
5/1 Bal.	$7,600	5/10 [(7,600-200) x 0.98]	$7,252
5/9 [4,800 x 0.97]	$4,656	5/11	$810
5/15	$230	5/12	$2,590
5/24	$5,850	5/17	$230
		5/27 [2,300 x 0.98]	$2,254
		5/29	$130
5/31 Bal.	$5,070
Accounts Receivable
5/2	$4,800	5/9	$4,800
5/31	$1,180
5/31 Bal.	$1,180
Inventory
5/1	$7,600	5/2	$3,100
5/12	$2,590	5/5	$200
5/17	$2,300	5/10 [(7,600-200)x0.02]	$148
5/17	$230	5/15	$230
5/25	$740	5/24	$4,140
5/29	$100	5/27 [2,300 x 0.02]	$46
		5/31	$880
5/31 Bal.	$4,816
Supplies
5/11	$810
5/31 Bal.	$810
Accounts Payable
5/5	$200	5/1	$7,600
5/10	$7,400	5/17	$2,300
5/27	$2,300	5/25	$740
		5/31 Bal.	$740
Common Shares
		5/1 Bal.	$7,600
		5/31 Bal.	$7,600
Sales
		5/2	$4,800
		5/24	$5,850
		5/31	$1,180
		5/31 Bal.	$11,830
Sales returns and allowances
5/29	$130
5/31 Bal.	$130
Sales Discounts
5/9 [4,800 x 0.03]	$144
5/31 Bal.	$144
Cost of goods sold
5/2	$3,100	5/29	$100
5/24	$4,140
5/31	$880
5/31 Bal.	$8,020