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:

DATE		TRANSACTIONS
2019
Sept.	2	Purchased ski boots for $4,800 plus a freight charge of $290 from Colorado Ski Shop, Invoice 6672, terms n/30.
	3	Purchased skis for $10,400 from Alaska Supply Company, Invoice 5916; terms 1/10, n/30.
	7	Received Credit Memorandum 165 for $820 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
	11	Purchased ski jackets for $3,200 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
	12	Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
	22	Purchased ski poles for $2,960 plus a freight charge of $210 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
	23	Purchased ski pants for $1,450 from Swenson Ski Goods, Invoice 528, terms n/30.
	25	Received Credit Memorandum 245 for $220 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
	27	Purchased ski sweaters for $4,400 plus a freight charge of $190 from Colorado Ski Shop, Invoice 6722, terms n/30.
	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.

GENERAL LEDGER ACCOUNTS

101	Cash, $24,000 Dr.
201	Accounts Payable
501	Purchases
502	Freight In
503	Purchases Returns and Allowances
504	Purchases Discounts

ACCOUNTS PAYABLE LEDGER ACCOUNTS

Alaska Supply Company
Cold Mountain Clothing Company
Colorado Ski Shop
Swenson Ski Goods

Analyze:
What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

ACCOUNTS PAYABLE LEDGER ACCOUNTS
Complete this question by entering your answers in the tabs below.

General Ledgers

AP Ledgers

Schedule of AP

Analyze

Post the transactions to the appropriate accounts in the general ledger.

	Cash Account No: 101 Accounts Payable Account No: 201 Date Debit Credit Balance Date Debit Credit Balance Sept 1, 2019 Purchases Account No: 501 Freight In Account No: 502 Date Debit Credit Balance Date Debit Credit Balance Purchases Returns and Allowances Account No: 503 Purchases Discounts Account No: 504 Date Debit Credit Balance Date Debit Credit Balance

General Ledgers

Complete this question by entering your answers in the tabs below.

General Ledgers

AP Ledgers

Schedule of AP

Analyze

Post the transactions to the appropriate accounts in the accounts payable ledger.

	Alaska Supply Company Terms: 3/10, n/30 Cold Mountain Clothing Company Terms: n/30 Date Debit Credit Balance Date Debit Credit Balance Colorado Ski Shop Terms: n/30 Swenson Ski Goods Terms: n/30 Date Debit Credit Balance Date Debit Credit Balance

General Ledgers

Schedule of AP

schedule.

	BIG COUNTRY SKI SHOP Schedule of Accounts Payable September 30, 2019 Alaska Supply Company Cold Mountain Clothing Company Colorado Ski Shop Swenson Ski Goods Total

What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

	Portion of clothing items purchased

Answer 1

	Journal Entry
		Debit	Credit
02.09.2019	Purchase A/c	4800
	Freight Expense A/c	290
	To Colorado Ski Shop		5090
03.09.2019	Purchase A/c	10400
	To Alaska Supply Company A/c		10400
07.09.2019	Colorado Ski Shop A/c	820
	To Purchase Return		820
11.09.2019	Purchase A/c	3200
	To Cold mountain clothing company		3200
12.09.2019	Alaska Supply Company A/c	10400
	To Cash		10296
	To cash discount		104
22.09.2019	Purchase A/c	2960
	Freight A/c	210
	To Alaska Supply Company A/c		3170
23.09.2019	Purchase A/c	1450
	To Swenson Ski Goods A/c		1450
25.09.2019	Swenson Ski Goods A/c	220
	To Purchase Return		220
27.09.2019	Purchase A/c	4400
	Freight A/c	190
	To Colorado Ski Shop A/c		4590
30.09.2019	Colorado Ski Shop A/c	4270
	To Cash		4270
	Ledger Account
Cash		Account No : 101
Date	Debit	Credit	Balance
Sept 1,2019	24000		24000
Sept 12,2019		10296	13704
Sept 30,2019		4270	9434
Accounts Payable		Account No : 201
Date	Debit	Credit	Balance
Sept 2, 2019		5090	5090
Sept 3, 2019		10400	15490
Sept 7,2019	820		14670
Sept 11,2019		3200	17870
Sept 12,2019	10400		7470
Sept 22,2019		3170	10640
Sept 23,2019		1450	12090
Sept 25,2019	220		11870
Sept 27,2019		4590	16460
Sept 30,2019	4270		12190
Purchases		Account No : 501
Date	Debit	Credit	Balance
Sept 2, 2019	4800		4800
Sept 3, 2019	10400		15200
Sept 11,2019	3200		18400
Sept 22,2019	2960		21360
Sept 23,2019	1450		22810
Sept 27,2019	4400		27210
Freight In		Account No : 502
Date	Debit	Credit	Balance
Sept 2, 2019	290		290
Sept 22,2019	210		500
Sept 27,2019	190		690
Purchases Returns and Allowances		Account No : 503
Date	Debit	Credit	Balance
Sept 7, 2019	820		290
Sept 25, 2019	220		510
Purchases Discounts		Account No : 504
Date	Debit	Credit	Balance
Sept 12, 2019	104		104
Alaska Supply Company		Terms: 3/10,n/30
Date	Debit	Credit	Balance
Sept 3, 2019		10400	10400
Sept 12, 2019	10400		0
Sept 22, 2019		3170	3170
Cold Mountain Clothing Company		Terms: n/30
Date	Debit	Credit	Balance
Sept 11, 2019		3200	3200
Colorado Ski Shop		Terms: n/30
Date	Debit	Credit	Balance
Sept 2, 2019		5090	5090
Sept 7, 2019	820		4270
Sept 27, 2019		4590	8860
Sept 30, 2019	4270		4590
Swenson Ski Goods		Terms: n/30
Date	Debit	Credit	Balance
Sept 23, 2019		1450	1450
Sept 25, 2019	220		1230
		BIG COUNTRY SKI SHOP
		Schedule of Accounts Payable
		September 30, 2019
		Alaska Supply Company	3170
		Cold Mountain Clothing Company	3200
		Colorado Ski Shop	4590
		Swenson Ski Goods	1230
		Total	12190
What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.
Portion of clothing items purchased	13850