Question

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 20X1. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 20X1 follow:

DATE			TRANSACTIONS
20X1
Sept.	2		Purchased ski boots for $6,100 plus a freight charge of $260 from Colorado Ski Shop, Invoice 6672, terms n/30.
	3		Purchased skis for $11,700 from Alaska Supply Company, Invoice 5916; terms 2/10, n/30.
	7		Received Credit Memorandum 165 for $950 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 $4,500 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 $4,260 plus a freight charge of $145 from Alaska Supply Company, Invoice 5950; terms 3/10, n/30.
	23		Purchased ski pants for $2,750 from Swenson Ski Goods, Invoice 528, terms n/30.
	25		Received Credit Memorandum 245 for $350 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 $3,100 plus a freight charge of $125 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:

2a. Post the transactions to the appropriate accounts in the general ledger.

GENERAL LEDGER ACCOUNTS

101	Cash, $26,000 Dr.
201	Accounts Payable
501	Purchases
502	Freight In
503	Purchases Returns and Allowances
504	Purchases Discounts

Answer 1

GENERAL LEDGER ACCOUNTS:

CASH

ACCOUNT	DEBIT	ACCOUNT	CREDIT
BALANCE	26,000	ACCOUNTS PAYABLE- ALASKA	11,466
		ACCOUNTS PAYABLE - COLORADO	5,150
		BALANCE	9,384
TOTAL	26,000		26,000

ACCOUNTS PAYABLE

ACCOUNT	DEBIT	ACCOUNT	CREDIT
PURCHASE RETURNS-COLORADO	950	PURCHASE-COLORADO	6,100
CASH	11,466	FREIGHT	260
DISCOUNT	234	PURCHASE - ALASKA	11,700
PURCHASE RETURNS -SWENSON	350	PURCHASE - COLD MOUNTAIN	4,500
CASH	5,150	PURCHASE -ALASKA	4,260
		FREIGHT	145
		PURCHASE - SWENSON	2,750
		PURCHASE - COLORADO	3,100
		FREIGHT	125
BALANCE	14,790
TOTAL	32,940		32,940

PURCHASES

ACCOUNT	DEBIT	ACCOUNT	CREDIT
ACCOUNTS PAYABLE - COLORADO	6,100
PAYABLE - ALASKA	11,700
PAYABLE - COLD MOUNTAIN	4,500
PAYABLE-ALASKA	4,260
PAYABLE-SWENSON	2,750
PAYABLE-COLORADO	3,100
		BALANCE	32,410
TOTAL	32,410		32,410

FREIGHT

ACCOUNT	DEBIT	ACCOUNT	CREDIT
ACCOUNTS PAYABLE-COLORADO	260
PAYABLE-ALASKA	145
PAYABLE - COLORADO	125
		BALANCE	530
TOTAL	530		530

PURCHASE RETURNS AND ALLOWANCES

ACCOUNT	DEBIT	ACCOUNT	CREDIT
		ACCOUNTS PAYABLE-COLORADO	950
		PAYABLE-SWENSON	350
BALANCE	1,300
TOTAL	1,300		1,300

PURCHASE DISCOUNTS

ACCOUNT	DEBIT	ACCOUNT	CREDIT
		ACCOUNTS PAYABLE-ALASKA	234
BALANCE	234
TOTAL	234		234