5-4A Date Account Titles and Explanation Debit Credit (To record credit sale.) (
ID: 2419657 • Letter: 5
Question
5-4A
Date
Account Titles and Explanation
Debit
Credit
(To record credit sale.)
(To record cost of merchandise sold.)
(To record credit sale.)
(To record cost of merchandise sold.)
SHOW LIST OF ACCOUNTS
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Cash
No. 101
Date
Explanation
Ref
Debit
Credit
Balance
Balance
?
J1
J1
J1
J1
Accounts Receivable
No. 112
Date
Explanation
Ref
Debit
Credit
Balance
J1
J1
J1
J1
Inventory
No. 120
Date
Explanation
Ref
Debit
Credit
Balance
Balance
?
J1
J1
J1
J1
J1
J1
J1
J1
J1
Accounts Payable
No. 201
Date
Explanation
Ref
Debit
Credit
Balance
J1
J1
J1
J1
J1
J1
Owner’s Capital
No. 301
Date
Explanation
Ref
Debit
Credit
Balance
Balance
?
Sales Revenue
No. 401
Date
Explanation
Ref
Debit
Credit
Balance
J1
J1
Sales Returns and Allowances
No. 412
Date
Explanation
Ref
Debit
Credit
Balance
J1
Cost of Goods Sold
No. 505
Date
Explanation
Ref
Debit
Credit
Balance
J1
J1
SHOW LIST OF ACCOUNTS
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ADAM'S DISCORAMA
Trial Balance
April 30, 2014
Debit
Credit
5-4A
Adam Nichols, a former disc golf star, operates Adam’s Discorama. At the beginning of the current season on April 1, the ledger of Adam’s Discorama showed Cash $2,000.00, Inventory $2,500.00, and Owner’s Capital $4,500.00. The following transactions were completed during April.Apr. 5 Purchased golf discs, bags, and other inventory on account from Rayford Co. $1,000.00, FOB shipping point, terms 2/10, n/60. 7 Paid freight on the Rayford purchase $50.00. 9 Received credit from Rayford Co. for merchandise returned $200.00. 10 Sold merchandise on account for $870.00, terms n/30. The merchandise sold had a cost of $522.00. 12 Purchased disc golf shirts and other accessories on account from Galaxy Sportswear $560.00, terms 1/10, n/30. 14 Paid Rayford Co. in full, less discount. 17 Received credit from Galaxy Sportswear for merchandise returned $70.00. 20 Made sales on account for $700.00, terms n/30. The cost of the merchandise sold was $370.00. 21 Paid Galaxy Sportswear in full, less discount. 27 Granted an allowance to customers for clothing that was flawed$40.00. 30 Received payments on account from customers $920.00.
Explanation / Answer
(1)
5.April Inventory Dr.$1000
To Rayford Co. $1,000
7april Inventory Dr. $50.
To cash $50
9april Rayford Co. Dr.$200
To Inventory $200
10april accounts receivable Dr.870
cost of goods sold Dr.522
To sale 870
To inventory 522
12april Inventory Dr.$560
To Galaxy Sportswear $560
14april Rayford Co(1000-200) Dr.$800
To inventory(2%*800) $16
To cash $784
17april Galaxy Sportswear Dr.$70
To inventory $70
20april accounts receivable Dr.$700
cost of goods sold Dr.$370
To sales $700
To inventory $370
21april Galaxy Sportswear(560 - 70) $490
To inventory (490 * 1%) $4.9
To cash $485.1
27 april sales return and allowance Dr.40
To accounts receivable 40
30april cash Dr.$920
To accounts receivable $920
3. ADAM'S DISCORAMA
Trial Balance
April 30, 2014
Dr. Cr.
cash(2000-50-784-485.1 +920) 1600.9
Inventory(2500+1000 +50-200-522 +560 -16 -70 - 370 - 4.9) 2927.1
owner capital 4500
sales return and allowance 40
accounts receivable(870 + 700 - 920 - 40) 610
cost of goods sold (522+370) 892
sales - 1570
$6070 $6070
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