Question

Wonder Wilderness Company is a service based company that rents canoes for use on local lakes and rivers. At the beginning of the new​ year, Wonder Wilderness Company decided to carry and sell​ T-shirts with its logo printed on them. The company uses the perpetual inventory system to account for the inventory. During January 2019​, Wonder Wilderness Company completed the following merchandising ​transactions:

Jan. 1 2 3 7 8 Purchased 14 T-shirts at $9 each and paid cash Sold 9 T-shirts for $14 each, total cost of $81. Received cash. Purchased 100 T-shirts on account at $12 each. Terms 5/10, n/30 Paid the supplier for the T-shirts purchased on January 3, less discount. Realized 5 T-shirts from the January 1 order were printed wrong and returned them for a cash refund Sold 80 T-shirts on account for $14 each, total cost of $960. Terms 4/15, n/45 Received payment for the T-shirts sold on account on January 10, less discount. Purchased 120 T-shirts on account at $9 each. Terms 5/15, n/30 Wonder Wilderness Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $100 purchase allowance Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount. Sold 110 T-shirts on account for $14 each, total cost of $915. Terms 5/20, n/30 Received a payment on account for the T-shirts sold on January 21, less discount. Purchased 300 T-shirts on account at $12 each. Terms 5/10, n/30, FOB shipping point. Paid freight associated with the January 25 purchase, $30 Paid for the January 25 purchase, less discount. Sold 200 T-shirts on account for $14 each, total cost of $2,151. Terms 4/10, п/30 Received payment for the T-shirts sold on January 30, less discount. 10 12 14 18 20 21 23 25 27 29 30 31

Enter the transactions in a sales journal​ (page 2), a cash receipts journal​ (page 5, omit Sales Discounts Forfeited​ column), a purchases journal​ (page 7), a cash payments journal​ (page 6), and a general journal​ (page 4), as appropriate. Total each column of the special journals. Show that total debits equal total credits in each special journal.

Answer 1

		Debit	Credit
01/01/19	PURCHASES	126
	CAsh A/C		126
02/01/19	CAsh A/C	126
	SALE OF T SHIRTS		126
03/01/19	PURCHASES	1200
	VENDOR		1200
07/01/19	VENDOR	1200
	DISCOUNT RECEIVED		60
	CAsh A/C		1140
08/01/19	SALES RETURNS	70
	CAsh A/C		70
10/01/19	ACCOUNT RECEIVABLES	1120
	SALE OF T SHIRTS		1120
12/01/19	CAsh A/C	1075.2
	DISCOUNT ALLOWED	44.8
	ACCOUNT RECEIVABLES		1120
14/01/19	PURCHASES	1080
	VENDOR		1080
18/01/19	VENDOR	100
	ALLOWANCE RECEIVED		100
20/01/19	VENDOR	931
	DISCOUNT RECEIVED	49
	CAsh A/C		980
21/01/19	ACCOUNT RECEIVABLES	1540
	SALE OF T SHIRTS		1540
23/01/19	CAsh A/C	1462.55
	DISCOUNT ALLOWED	77.45
	ACCOUNT RECEIVABLES		1540
25/01/19	PURCHASES	3600
	VENDOR		3600
27/01/19	FRIGHT A/C	30
	CAsh A/C		30
29/01/19	VENDOR	3420
	DISCOUNT RECEIVED	180
	CAsh A/C		3600
30/01/19	ACCOUNT RECEIVABLES	2400
	SALE OF T SHIRTS		2400
31/01/19	CAsh A/C	2304
	DISCOUNT ALLOWED	96
	ACCOUNT RECEIVABLES		2400
		22232	22232