Question

Problem 5-2A (Part Level Submission)

At the beginning of the current tennis season, on April 1, 2017, Novak Tennis Shop's inventory consisted of 50 tennis racquets at a cost of $50 each. Novak uses a perpetual inventory system. The following transactions occurred in April:

Apr. 2		Purchased 160 additional racquets from Roberts Inc. for $8,000, terms n/30.
4		Determined that five of the racquets purchased on April 2 were damaged and returned them to Roberts Inc. Roberts Inc. credited Novak’s account.
5		Sold 45 racquets to Tennis Dome for $130 each, terms n/30.
6		Tennis Dome returned 15 of the racquets after determining it had purchased more racquets than it needed. Novak gave Tennis Dome a credit on its account and returned the racquets to inventory.
10		Sold 40 racquets at $130 each to cash customers.
12		Ten of these racquets were returned for cash. The customers claimed they never play tennis and had no idea how they had been talked into purchasing the racquets. Refunded cash to these customers and returned the racquets to inventory.
17		An additional 10 of the racquets sold on April 10 were returned because the racquets were damaged. The customers were refunded cash and the racquets were sent to a local recycler.
25		Sold 60 racquets to the Summer Club for $130 each, terms n/30.
29		Summer Club returned 25 of the racquets after the tennis pro had examined them and determined that these racquets were of inferior quality. Novak gave Summer Club a credit and decided to return the racquets to inventory with plans to sell them for the reduced price of $75 each.

Record the transactions for the month of April for Novak. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Date	Accounts Title	Dr	Cr
2-Apr	Inventory	$8,000
	Accounts Payable		$8,000
	(To record purchase of racquets)
4-Apr	Accounts Payable (8000/160*5)	$250
	Inventory		$250
	(To record return of 5 racquets)
5-Apr	Accounts receivable	$5,850
	Sales (45 *$130)		$5,850
	(To record sale of racquets)
	Cost of good sold (45*$50)	$2,250
	Inventory		$2,250
6-Apr	Sales Return	$1,950
	Accounts receivable (15*$130)		$1,950
	(To record return of 15 racquets)
	Inventory	$750
	Cost of good sold (15*50)		$750
10-Apr	Cash	$5,200
	Sales (40 * $130)		$5,200
	(To record sale of racquets)
	Cost of good sold (40*$50)	$2,000
	Inventory		$2,000
12-Apr	Sales Return	$1,300
	Cash (10*$130)		$1,300
	(To record return of 10 racquets)
	Inventory	$500
	Cost of good sold (10*$50)		$500
17-Apr	Sales Return	$1,300
	Cash (10*$130)		$1,300
	(To record return of 10 racquets)
	Inventory	$500
	Cost of good sold (10*$50)		$500
25-Apr	Accounts receivable	$7,800
	Sales (60*$130)		$7,800
	(To record sale of racquets)
	Cost of good sold (60*$50)	$3,000
	Inventory		$3,000
29-Apr	Sales Return	$3,250
	Accounts receivable (25*$130)		$3,250
	(To record return of 25 racquets)
	Inventory	$1,250
	Cost of good sold (25*$50)		$1,250