Question

May 1		Purchased merchandise on account from Hilton Wholesale Supply for $7,600, terms 2/10, n/30.
2		Sold merchandise on account for $4,100, terms 3/10, n/30. The cost of the merchandise sold was $3,500.
5		Received credit from Hilton Wholesale Supply for merchandise returned $300.
9		Received collections in full, less discounts, from customers billed on May 2.
10		Paid Hilton Wholesale Supply in full, less discount.
11		Purchased supplies for cash $840.
12		Purchased merchandise for cash $2,840.
15		Received $250 refund for return of poor-quality merchandise from supplier on cash purchase.
17		Purchased merchandise from Northern Distributors for $2,300, terms 2/10, n/30.
19		Paid freight on May 17 purchase $220.
24		Sold merchandise for cash $5,620. The cost of the merchandise sold was $4,400.
25		Purchased merchandise from Toolware Inc. for $790, terms 3/10, n/30.
27		Paid Northern Distributors in full, less discount.
29		Made refunds to cash customers for returned merchandise $120. The returned merchandise was returned to inventory and had cost $80.
31		Sold merchandise on account for $1,200, terms n/30. The cost of the merchandise sold was $820.

Record the above transactions

Answer 1

Journal Entries:

Date	Account title and Explanation	Debit	Credit
May 1	Inventory	$7,600
	Accounts payable-Hilton		$7,600
	[To record purchase of inventory on account]
2	Accounts receivable	$4,100
	Sales revenue		$4,100
	[To record credit sales]
	Cost of goods sold	$3,500
	Inventory		$3,500
	[To record cost of goods sold]
5	Accounts payable-Hilton	$300
	Inventory		$300
	[To record purchase returns]
9	Cash	$3,977
	Sales discount [4100 x 3%]	$123
	Accounts receivable		$4,100
	[To record collections from customer]
10	Accounts payable [7600-300 returns]	$7,300
	Cash		$7,154
	Inventory [7300 x 2%]		$146
	[To record cash paid to supplier]
11	Supplies	$840
	Cash		$840
	[To record purchase of supplies for cash]
12	Inventory	$2,840
	Cash		$2,840
	[To record purchase of inventory for cash]
15	Cash	$250
	Inventory		$250
	[To record purchase allowance]
17	Inventory	$2,300
	Accounts payable-Northan		$2,300
	[To record purchase of inventory on account]
19	Inventory	$220
	Cash		$220
	[To record payment of freight]
24	Cash	$5,620
	Sales revenue		$5,620
	[To record cash sales]
	Cost of goods sold	$4,400
	Inventory		$4,400
	[To record cost of goods sold]
25	Inventory	$790
	Accounts payable-Toolware		$790
	[To record purchase of inventory on account]
27	Accounts payable-Northen	$2,300
	Cash		$2,254
	Inventory [2300 x 2%]		$46
	[To record cash paid to supplier]
29	Sales returns and allowance	$120
	Cash		$120
	[To record sales returns]
	Inventory	$80
	Cost of goods sold		$80
	[To record cost of sales returns]
30	Accounts receivable	$1,200
	Sales revenue		$1,200
	[To record credit sales]
	Cost of goods sold	$820
	Inventory		$820
	[To record cost of goods sold]