Question

(ACC $8,800. 2 Sold on account for $5,000, terms 2/10, nv30. The cost of the merchandise sold was $3,750. 10 Paid Black Wholesale Supply in full, less discount. from supplier on cash purchase. 24 Sold from Clasps Inc. for $880, terms 3/10, /30. 27 Paid Wilhelm pdf MacBook Air

Answer 1

Answer 1.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-May	Inventory	8,500.00
	Accounts Payable		8,500.00
	(To record the credit purchase)
2-May	Accounts Receivable	5,000.00
	Sales Revenue)		5,000.00
	(To record the credit sales)
	Cost of Goods Sold	3,750.00
	Inventory		3,750.00
	(To record cost of goods sold)
5-May	Accounts Payable	600.00
	Inventory		600.00
	(To record the purchase return)
9-May	Cash ($5,000 x 98%)	4,900.00
	Sales Discounts ($5,000 X 2%)	100.00
	Accounts Receivable		5,000.00
	(To record the cash received)
10-May	Accounts Payable	7,900.00
	Cash ($7,900 X 99%)		7,821.00
	Inventory		79.00
	(To record the amount paid)
11-May	Supplies	990.00
	Cash		990.00
	(tor record the supplies purchased)
12-May	Inventory	3,410.00
	Cash		3,410.00
	(To record the cash purchase)
15-May	Cash	253.00
	Inventory		253.00
	(To record the cash recd. For poow quality)
17-May	Inventory	2,500.00
	Accounts Payable		2,500.00
	(To record the credit purchase)
19-May	Inventory	275.00
	Cash		275.00
	(To record the freight paid)
24-May	Cash	6,050.00
	Sales Revenue)		6,050.00
	(To record the credit sales)
	Cost of Goods Sold	4,510.00
	Inventory		4,510.00
	(To record cost of goods sold)
25-May	Inventory	880.00
	Accounts Payable		880.00
	(To record the credit purchase)
27-Mar	Accounts Payable	2,500.00
	Cash ($2,500 X 98%)		2,450.00
	Inventory ($2,500 X 2%)		50.00
	(To record the amount paid)
29-Mar	Sales Return & Allowance	135.00
	Cash		135.00
	(To record the sales returns)
	Inventory	91.00
	Cost of Goods Sold		91.00
	(To record the cost of goods sold o returned goods)
31-May	Accounts Receivable	1,408.00
	Sales Revenue)		1,408.00
	(To record the credit sales)
	Cost of Goods Sold	913.00
	Inventory		913.00
	(To record cost of goods sold)

Answer 2.
Cash					Accounts Receivable					Inventory
Beg. Bal.	8,800.00	7,821.00	10-May		Beg. Bal.	-	5,000.00	9-May		Beg. Bal.	-	3,750.00	2-May
9-May	4,900.00	990.00	11-May		2-May	5,000.00				1-May	8,500.00	600.00	5-May
15-May	253.00	3,410.00	12-May		31-May	1,408.00				12-May	3,410.00	79.00	10-May
24-May	6,050.00	275.00	19-May							17-May	2,500.00	253.00	15-May
		2,450.00	27-Mar							19-May	275.00	4,510.00	24-May
		135.00	29-Mar							25-May	880.00	50.00	27-Mar
										29-Mar	91.00	913.00	31-May
End. Bal.	4,922.00				End. Bal.	1,408.00				End. Bal.	5,501.00
Supplies					Accounts Payable					Common Stock
Beg. Bal.	-				Beg. Bal.		-			Beg. Bal.		8,800.00
11-May	990.00				5-May	600.00	8,500.00	1-May
					10-May	7,900.00	2,500.00	17-May
					27-Mar	2,500.00	880.00	25-May
End. Bal.	990.00				End. Bal.		880.00			End. Bal.		8,800.00
Sales Revenue					Sales Return & Allowances					Sales Discounts
		5,000.00	2-May		29-Mar	135.00				9-May	100.00
		6,050.00	24-May
		1,408.00	31-May
End. Bal.		12,458.00			End. Bal.	135.00				End. Bal.	100.00
Cost of Goods Sold
2-May	3,750.00	91.00	29-Mar
24-May	4,510.00
31-May	913.00
End. Bal.	9,082.00

Answer 3.
Trial Balance
As on May 31
Particulars	Dr. Amt.	Cr. Amt.
Cash	4,922.00
Accounts Receivable	1,408.00
Inventory	5,501.00
Supplies	990.00
Accounts Payable		880.00
Common Stock		8,800.00
Sales Revenue		12,458.00
Sales Return & Allowances	135.00
Sales Discounts	100.00
Cost of Goods Sold	9,082.00
Total	22,138.00	22,138.00
WINTERS HARDWARE STORE
Income Statement
For the Month Ended May 31
Sales Revenue		12,458.00
Less:
Sales Return & Allowances	135.00
Sales Discounts	100.00	235.00
Net Sales		12,223.00
Cost of Goods Sold		9,082.00
Gross Margin		3,141.00
Answer 4.
Gross Profit Rate = $3,141 (Gross Profit) / $12,223 (Net sales)
Gross Profit Rate = 25.70% (Approx.)