Journalize entries Winters Hardware Store completed the following merchandising
ID: 2340451 • Letter: J
Question
Journalize entries
Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $11,200 and Common Stock of $11,200 May 1 Purchased merchandise on account from Black Wholesale Supply for $7,500, terms 1/10, n/30 Sold merchandise on account for $5,000, terms 2/10, n/30. The cost of the merchandise sold was $3,750 2 5 Received credit from Black Wholesale Supply for merchandise returned $400 9 10 11 12 15 17 19 24 25 27 29 31 Received collections in full, less discounts, from customers billed on May 2 Paid Black Wholesale Supply in full, less discount. Purchased supplies for cash $1,260. Purchased merchandise for cash $4,340 Received $322 refund for return of poor-quality merchandise from supplier on cash purchase Purchased merchandise from Wilhelm Distributors for $2,550, terms 2/10, n/30 Paid freight on May 17 purchase $350 Sold merchandise for cash S7,700. The cost of the merchandise sold was $5,740 Purchased merchandise from Clasps Inc. for $1,120, terms 3/10, n/30 Paid Wilhelm Distributors in full, less discount. Made refunds to cash customers for returned merchandise $125. The returned merchandise had cost $94 Sold merchandise on account for $1,792, terms n/30. The cost of the merchandise sold was $1,162 ournalize the transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit CreditExplanation / Answer
SOLUTION
Date Accounts title and Explanation Debit ($) Credit ($) May 1 Merchandise inventory 7,500 Accounts payable - BW supply 7,500 (To record the purchase of merchandise on account) May 2 Accounts receivable 5,000 Sales revenue 5,000 (To record the sale of merchandise on account) May 2 Cost of goods sold 3,750 Merchandise Inventory 3,750 (To record the cost of merchandise sold) May 5 Accounts payable - BW supply 400 Merchandise inventory 400 (To record the return of merchandise purchased) May 9 Cash 4,900 Sales discount and allowances (5,000 * 2%) 100 Accounts receivable 5,000 (To record the receipt of cash from an account) May 10 Accounts payable - BW supply (7,500-400) 7,100 Cash 7,029 Merchandise inventory (7,100*1%) 71 (To record the payment of an accounts payable) May 11 Supplies 1,260 Cash 1,260 (To record the cash paid for supplies) May 12 Merchandise inventory 4,340 Cash 4,340 (To record the cash paid for merchandise inventory) May 15 Cash 322 Merchandise inventory 322 (To record the refund of cash paid for merchandise) May 17 Merchandise inventory 2,550 Accounts payable - W distributors 2,550 (To record the purchase of merchandise on account) May 19 Merchandise inventory 350 Cash 350 (To record the cash paid for freight) May 24 Cash 7,700 Sales revenue 7,700 (To record the sale of merchandise by cash) May 24 Cost of goods sold 5,740 Merchandise inventory 5,740 (To record the cost of merchandise sold) May 25 Merchandise inventory 1,120 Accounts payable- C Inc. 1,120 (To record the purchase of merchandise on account) May 27 Accounts payable - W distributors 2,550 Cash 2,499 Merchandise inventory (2,550 *2%) 51 (To record the payment of an accounts payable) May 29 Sales return 125 Cash 125 (To record the cash paid for sales return) May 29 Merchandise inventory 94 Cost of goods sold 94 (To record the cost of goods returned) May 31 Accounst receivable 1,792 Sales revenue 1,792 (To record the sales of merchandise on account) May 31 Cost of goods sold 1,162 Merchandise inventory 1,162 (To record the cost of merchandise sold)Related Questions
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