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Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

Apr.		2			Purchased $15,500 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.
		3		(a)	Sold merchandise on credit to Page Alistair, Invoice No. 760, for $6,000 (cost is $3,000).
		3		(b)	Purchased $1,510 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM.
		4			Issued Check No. 587 to World View for advertising expense, $909.
		5			Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,100 (cost is $7,600).
		6			Received an $85 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
		9			Purchased $10,210 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM.
		11			Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $11,900 (cost is $6,400).
		12			Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount.
		13		(a)	Received payment from Page Alistair for the April 3 sale less the discount.
		13		(b)	Sold $10,200 of merchandise on credit to Page Alistair (cost is $4,700), Invoice No. 763.
		14			Received payment from Paula Kohr for the April 5 sale less the discount.
		16		(a)	Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $9,000. Cashed the check and paid employees.
		16		(b)	Cash sales for the first half of the month are $58,780 (cost is $37,100). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
		17			Purchased $12,000 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
		18			Borrowed $71,000 cash from First State Bank by signing a long-term note payable.
		20		(a)	Received payment from Nic Nelson for the April 11 sale less the discount.
		20		(b)	Purchased $1,180 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
		23		(a)	Received a $800 credit memorandum from Grant Company for the return of defective merchandise received on April 17.
		23		(b)	Received payment from Page Alistair for the April 13 sale less the discount.
		25			Purchased $11,360 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60.
		26			Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount.
		27		(a)	Sold $3,310 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,530).
		27		(b)	Sold $6,400 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $5,375).
		30		(a)	Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,000.
		30		(b)	Cash sales for the last half of the month are $72,200 (cost is $60,600).

Assume that Wiset Co. uses the perpetual inventory system.

2 & 3. Enter the March 31 balances for Cash ($90,000), Inventory ($153,000), Long-Term Notes Payable ($143,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts receivable subsidiary ledger accounts for Paula Kohr, Page Alistair, and Nic Nelson.

GENERAL LEDGER Cash Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Mar. 31 Inventory Long-Term Notes Payable Date Debit Credit Balance Date Debit Credit Balance Mar. 31 Mar. 31 B. Wiset, Capital Sales Date Debit Credit Balance Date Debit Credit Balance Mar. 31 Sales Discounts Cost of Goods Sold Date Debit Credit Balance Date Debit Credit Balance ACCOUNTS RECEIVABLE LEDGER Page Alistair Paula Kohr Date Debit Credit Balance Date Debit Credit Balance Nic Nelson Date Debit Credit Balance

Answer 1

1.

Date	Account Titles	Debit	Credit
April		$	$
2	Inventory	15,500
	Accounts Payable		15,500
3 ( a)	Accounts Receivable	6,000
	Sales		6,000
3( a)	Cost of Goods Sold	3,000
	Inventory		3,000
3 ( b)	Office Supplies	1,510
	Accounts Payable		1,510
4	Advertising Expense	909
	Cash		909
5	Accounts Receivable	8,100
	Sales		8,100
5	Cost of Goods Sold	7,600
	Inventory		7,600
6	Accounts Payable	85
	Office Supplies		85
9	Store Equipment	10,210
	Accounts Payable		10,210
11	Accounts Receivable	11,900
	Sales		11,900
11	Cost of Goods Sold	6,400
	Inventory		6,400
12	Accounts Payable	15,500
	Inventory		310
	Cash		15,190
13 (a)	Cash	5,880
	Sales Discounts	120
	Accounts Receivable		6,000
13 (b )	Accounts Receivable	10,200
	Sales		10,200
13 (b)	Cost of Goods Sold	4,700
	Inventory		4,700
14	Cash	7,938
	Sales Discounts	162
	Accounts Receivable		8,100
16 (a)	Sales Salaries Expense	9,000
	Cash		9,000
16 ( b)	Cash	58,780
	Sales		58,780
16 (b)	Cost of Goods Sold	37,100
	Inventory		37,100
17	Inventory	12,000
	AccountsPayable		12,000
18	Cash	71,000
	Long Term Note Payable		71,000
20 ( a)	Cash	11,662
	Sales Discounts	238
	Accounts Receivable		11,900
20 (b)	Store Supplies	1,180
	Accounts Payable		1,180
23 (a)	Accounts Payable	800
	Inventory		800
23 (b)	Cash	9,996
	Sales Discounts	204
	Accounts Receivable		10,200
25	Inventory	11,360
	Accounts Payable		11,360
26	Accounts Payable	11,200
	Inventory		224
	Cash		10,976

Contd.

27 ( a )	Accounts Receivable	3,310
	Sales		3,310
27 (a)	Cost of Goods Sold	2,530
	Inventory		2,530
27 (b)	Accounts Receivable	6,400
	Sales		6,400
27 (b)	Cost of Goods Sold	5,375
	Inventory		5,375
30 ( a)	Sales Salaries Expense	9,000
	Cash		9,000
30 (b)	Cash	72,200
	Sales		72,200
30 (b)	Cost of Goods Sold	60,600
	Inventory		60,600

2.

General Ledger
Cash
Date	Debit	Credit	Balance
Mar 31			90,000
Apr 4		909
Apr 12		15,190
Apr 13	5,880
Apr 14	7,938
Apr 16		9,000
Apr 16	58,780
Apr 18	71,000
Apr 20	11,662
Apr 23	9,996
Apr 26		10,976
Apr 30		9,000
Apr 30	72,200
Apr 30			282,381
Accounts Receivable
Date	Debit	Credit	Balance
Mar 31			0
Apr 3	6,000
Apr 5	8,100
Apr 11	11,900
Apr 13		6,000
Apr 13	10,200
Apr 14		8,100
Apr 20		11,900
Apr 23		10,200
Apr 27	9,710
Apr 30			9,710
Inventory
Date	Debit	Credit	Balance
Mar 31			153,000
Apr 2	15,500
Apr 3		3,000
Apr 5		7,600
Apr 11		6,400
Apr 12		310
Apr 13		4,700
Apr 16		37,100
Apr 17	12,000
Apr 23		800
Apr 25	11,360
Apr 26		224
Apr 27		7,905
Apr 30		60,600
Apr 30			63,221
Store Supplies
Date	Debit	Credit	Balance
Mar 31			0
Apr 20	1,180
Apr 30			1,180
Office Supplies
Date	Debit	Credit	Balance
Mar 31			0
Apr 3	1,510
Apr 6		85
Apr 30			1,425
Store Equipment
Date	Debit	Credit	Balance
Mar 31			0
Apr 9	10,210
Apr 30			10,210
Accounts Payable
Date	Debit	Credit	Balance
Mar 31			0
Apr 2		15,500
Apr 3		1,510
Apr 6	85
Apr 9		10,210
Apr 12	15,500
Apr 17		12,000
Apr 20		1,180
Apr 23	800
Apr 25		11,360
Apr 26	11,200
Apr 30			24,175
Long Term Notes Payable
Date	Debit	Credit	Balance
Mar 31			143,000
Apr 18		71,000
Apr 30			214,000
B. Wiset, Capital
Date	Debit	Credit	Balance
Mar 31			100,000
Apr 30			100,000
Sales
Date	Debit	Credit	Balance
Apr 3		6,000
Apr 5		8,100
Apr 11		11,900
Apr 13		10,200
Apr 16		58,780
Apr 27		9,710
Apr 30		72,200	176,890
Sales Discounts
Date	Debit	Credit	Balance
Apr 13	120
Apr 14	162
Apr 20	238
Apr 23	204
Apr 30			724
Cost of Goods Sold
Date	Debit	Credit	Balance
Apr 3	3,000
Apr 5	7,600
Apr 11	6,400
Apr 13	4,700
Apr 16	37,100
Apr 27	7,905
Apr 30	60,600		127,305
Advertising Expense
Date	Debit	Credit	Balance
Apr 4	909
Apr 30			909
Sales Salaries Expense
Date	Debit	Credit	Balance
Apr 16	9,000
Apr 30	9,000		18,000

3.

Accounts Receivable Ledger
Page Alistair
Date	Debit	Credit	Balance
March 31			0
Apr 3	6,000
Apr 13		6,000
Apr 13	10,200
Apr 23		10,200
Apr 30			0
Paula Kohr
Date	Debit	Credit	Balance
Mar 31			0
Apr 5	8,100
Apr 14		8,100
Apr 27	3,310
Apr 30			3,310
Nic Nelson
Date	Debit	Credit	Balance
Mar 31			0
Apr 11	11,900
Apr 20		11,900
Apr 27	6,400
Apr 30			6,400