At the beginning of the current season on April 1, the ledger of Granite Hills P

Question

At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $ 3,010; Inventory $ 4,010; and Common Stock $ 7.020. The following transactions occurred during April 2017 Apr. Purchased golf bags, clubs, and balls on account from Arnie Co. $1,530, terms 4/10, n/60. 7 9 10 12 Paid freight on Arnie Co. purchases $ 82. Received credit from Arnie Co. for merchandise returned $ 230. Sold merchandise on account to members $ 1,367, terms n/30. Purchased golf shoes, sweaters. and other accessories on account from Woods Sportswear $ 847, terms 2/10, n/30. 14 Paid Arnie Co.in full. 17 Received credit from Woods Sportswear for merchandise returned $ 47 20 Made sales on account to members $ 826, terms n/30 21 Paid Woods Sportswear in full. 27 Granted credit to members for clothing that did not fit properly $ 82.

Explanation / Answer

Journal entries: Date Accounts title and explanations Debit $ Credit $ 05.04.17 Purchases Dr. 1530    Accounts payable-Arnie Co. 1530 07.04.17 Freight inward Dr. 82     Cash account 82 09.04.17 Accounts payable-Arnie Co. 230     Purchases return 230 10.04.17 Accounts receivable Dr. 1367      Sales revenue 1367 12.04.17 Purchases Dr. 847    Accounts payable-Woods Sportswear 847 14.04.17 Accounts payable-Arnie Co. 1300      Cash account 1248      Purchase discount (1300*4%) 52 17.04.17 Accounts payable-Woods Sportswear Dr. 47    Purchase return 47 20.04.17 Accounts receivable Dr. 826      Sales revenue 826 21.04.17 Accounts payable-Woods sportwear Dr. 800      Cash account 784      Purchase discount (800*2%) 16 27.04.17 Sales return Dr. 82    Accounts recievable 82 30.04.17 Cash account Dr. 1244      Accounts receivable 1244

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