Big Country Ski Shop is a retail store that sells ski equipment and clothing. Bi
ID: 2398890 • Letter: B
Question
Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:
Purchased ski boots for $4,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
Purchased skis for $10,200 from Alaska Supply Company, Invoice 5916; terms 2/10, n/30.
Received Credit Memorandum 165 for $800 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
Purchased ski jackets for $3,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
Purchased ski poles for $2,760 plus a freight charge of $220 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
Purchased ski pants for $1,250 from Swenson Ski Goods, Invoice 528, terms n/30.
Received Credit Memorandum 245 for $200 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
Purchased ski sweaters for $4,600 plus a freight charge of $200 from Colorado Ski Shop, Invoice 6722, terms n/30.
Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Required:
Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 2019.
Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.
Prepare a schedule of accounts payable.
DATE TRANSACTIONS 2019 Sept. 2Purchased ski boots for $4,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
3Purchased skis for $10,200 from Alaska Supply Company, Invoice 5916; terms 2/10, n/30.
7Received Credit Memorandum 165 for $800 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
11Purchased ski jackets for $3,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
12Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
22Purchased ski poles for $2,760 plus a freight charge of $220 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
23Purchased ski pants for $1,250 from Swenson Ski Goods, Invoice 528, terms n/30.
25Received Credit Memorandum 245 for $200 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
27Purchased ski sweaters for $4,600 plus a freight charge of $200 from Colorado Ski Shop, Invoice 6722, terms n/30.
30Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.
Explanation / Answer
Date Account Titles and Explanation Debit Credit Sept. 2 Purchases $4,600.00 Freight In $310.00 Accounts Payable, Colorado Ski Shop $4,910.00 Purchases ski boots Invoice 6672, terms n/30. Sept.3 Purchases $10,200.00 Accounts Payable, Alaska Supply Company $10,200.00 Purchases ski Invoice 5916 , terms 2/10, n/30. Sept.7 Accounts Payable, Colorado Ski Shop $800.00 Purchases Return and Allowance $800.00 Return defective ski boots was brought on Sep 2 Invoice 6672,Credit Memo165 Sept.11 Purchases $3,000.00 Accounts Payable,Cold Mountain Clothing Company $3,000.00 Purchases ski jackets Invoice 4091 , terms , n/30. Sept.12 Accounts Payable, Alaska Supply Company $9,996.00 Cash ($10,200 x (1-2%) $9,996.00 Issued check 104 to pay invoice 5916 Dated Sep 3 Sept.22 Purchases $2,760.00 Freight In $220.00 Accounts Payable, Alaska Supply Company $2,980.00 Purchases ski poless Invoice 5950, terms 3/10, n/30. Sept.23 Purchases $1,250.00 Accounts Payable, Swenson Ski Goods $1,250.00 Purchases ski pants Invoice 528, terms n/30.. Sept.25 Accounts Payable, Swenson Ski Goods $200.00 Purchases Return and Allowance $200.00 Return defective ski pants was brought on Sep 23 Invoice 528,Credit Memo 245 Sept.27 Purchases $4,600.00 Freight In $200.00 Accounts Payable, Colorado Ski Shop $4,800.00 Purchases ski sweaters Invoice 6722, terms n/30. Sept.30 Accounts Payable, Colorado Ski Shop $3,800.00 Cash $3,800.00 Issued check 110 to pay invoice 6672 Dated Sep 2, less the return of September 7.
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