Question

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:

DATE		TRANSACTIONS
2019
Sept.	2	Purchased ski boots for $5,000 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6672, terms n/30.
	3	Purchased skis for $10,600 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
	7	Received Credit Memorandum 165 for $840 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
	11	Purchased ski jackets for $3,400 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
	12	Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
	22	Purchased ski poles for $3,160 plus a freight charge of $200 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
	23	Purchased ski pants for $1,650 from Swenson Ski Goods, Invoice 528, terms n/30.
	25	Received Credit Memorandum 245 for $240 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
	27	Purchased ski sweaters for $4,200 plus a freight charge of $180 from Colorado Ski Shop, Invoice 6722, terms n/30.
	30	Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required:
Record the transactions in a general journal.

Analyze:
What was the amount of the cash discount on September 12?

Answer 1

Date	Account titles	Debit	Credit
Sept 2	Purchases	5000
	Freight in	150
	Colorado Ski Shop		5150
Sept 3	Purchases	10600
	Alaska Supply company		10600
Sept 7	Colorado Ski Shop	840
	Purchases returns and allowances		840
Sept 11	Purchases	3400
	Cold Mountain Clothing company		3400
Sept 12	Alaska Supply company	10600
	Purchases discounts		318
	Cash		10282
Sept 22	Purchases	3160
	Freight in	200
	Alaska Supply company		3360
Sept 23	Purchases	1650
	Sweson Ski goods		1650
Sept 25	Sweson Ski goods	240
	Purchases returns and allowances		240
Sept 27	Purchases	4200
	Freight in	180
	Colorado Ski Shop		4380
Sept 30	Colorado Ski Shop	4310
	Cash		4310

2. Discount on Sep 12 = 318