Question

At the beginning of the current season on April 1, the ledger of Tamarisk, Inc. Shop showed Cash $1,900, Inventory $2,500, and Common Stock $4,400. The following transactions were completed during April 2022. Apr. 5 7 9 10 12 14 Purchased golf discs, bags, and other inventory on account from Arnie Co. $1,050, FOB shipping point, terms 2/10, n/60 Paid freight on the Arnie purchase $60. Received credit from Arnie Co. for merchandise returned $200. Sold merchandise on account for $930, terms 1/30. The merchandise sold had a cost of $558. Purchased disc golf shirts and other accessories on account from Woods Sportswear $560, terms 1/10, 1/30. Paid Arnie Co. in full, less discount. Received credit from Woods Sportswear for merchandise returned $60. Made sales on account to members for $680, terms /30. The cost of the merchandise sold was $350. Paid Woods Sportswear in full, less discount Granted an allowance to members for clothing that did not fit $10. Received payments on account from members $860 17 20 21 27 30 The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold

Answer 1

Tamarisk Inc. Shop Journal Enteries Date Particulars 5.4.2022 Inventory Accounts Payable (Inventory on account) Debit in $ Credit in $ 1050 1050 60 7.4.2022 Inventory Cash (Freight paid) 60 200 9.4.2022 Accounts Payable Inventory (Inventory returned) 200 930 10.4.2022 Accounts Receivable Sales (Sales on account) 930 558 Cost of goods sold Inventory (To record cost of goods sold) 558 560 12.4.2022 Inventory Accounts Payable (Inventory on account) 560 833 17 850 14.4.2022 Cash Inventory Accounts Payable (Creditors paid in discount period) 1050 - 200 = 850 x 2% = 17 17.4.2022 Accounts Payable Inventory (Inventory returned) 60 60 680 20.4.2022 Accounts Receivable Sales (Sales on account) 680 350 Cost of goods sold Inventory (To record cost of goods sold) 350 495 5 21.4.2022 Cash Inventory Accounts Payable (Creditors paid in discount period) 560-60 = 500 x 1% = 5 500 10 27.4.2022 Sales Returns and Allowances Accounts Receivable (Allowance to customers) 10 860 30.4.2022 Cash Accounts Receivable (Cash from debtors) 860