(a) Date Account Titles and Explanation Debit Credit Waters Hardware Store compl

Question

(a)

Date

Account Titles and Explanation

Debit

Credit

Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water’s ledger showed Cash of $9,263 and Common Stock of $9,263.
May 1 Purchased merchandise on account from Hauke Wholesale Supply for $8,300, terms 1/10, n/30. 2 Sold merchandise on account for $5,300, terms 2/10, n/30. The cost of the merchandise sold was $3,975. 5 Received credit from Hauke Wholesale Supply for merchandise returned $500. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Hauke Wholesale Supply in full, less discount. 11 Purchased supplies for cash $1,042. 12 Purchased merchandise for cash $3,589. 15 Received $266 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Friedrich Distributors for $4,000, terms 2/10, n/30. 19 Paid freight on May 17 purchase $289. 24 Sold merchandise for cash $6,368. The cost of the merchandise sold was $4,747. 25 Purchased merchandise from Fasteners Inc. for $926, terms 3/10, n/30. 27 Paid Friedrich Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $138. The returned merchandise had cost $104. 31 Sold merchandise on account for $1,482, terms n/30. The cost of the merchandise sold was $961.

Explanation / Answer

Debit Credit 1 Purchased A/c $8,300 To Hauke $8,300 2 Debtor A/c $5,300 To Sales $5,300 Sales A/c $5,300 To Income statement $1,325 To Cost of goods sold $3,975 5 Hauke $500 To Purchase Return $500 9 Cash A/c $5,194 Discount allowed $106 To Debtor $5,300 10 Hauke A/c $7,800 To Discount Received $78 To Cash $7,722 11 Supplies A/c $1,042 To Cash A/c $1,042 12 Merchandise A/c $3,589 To Cash A/c $3,589 15 Cash A/c $266 To Merchandise A/c $266 17 Purchase A/c $4,000 To Friedrich Distribution $4,000 19 Freight A/c $289 To Cash $289 24 Cash A/c $6,368 To Sales $6,368 Sales A/c $6,368 To Income statement $1,621 Merchandise A/c $4,747 25 Merchandise A/c $926 To Fasteners A/c $926 27 Friedrich Distribution $4,000 To Discount Received $80 To Cash $3,920 29 Sales Return A/c $104 Income statement $34 To Cash $138 31 Debtor $1,482 To Sales A/c $1,482 Sales A/c $1,482 To Income statement $521 To cost of goods sold $961

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