Question

At the beginning of the current season on April 1, the ledger of Carla Vista Pro Shop showed Cash $3,360; Inventory $3,500; and Common Stock $6,860. The following transactions were completed during April 2022.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $1,500, terms 3/10, n/60.
7		Paid freight on Arnie purchase $80.
9		Received credit from Arnie Co. for merchandise returned $700.
10		Sold merchandise on account to members $1,420, terms n/30. The merchandise sold had a cost of $770.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,060, terms 2/10, n/30.
14		Paid Arnie Co. in full.
17		Received credit from Woods Sportswear for merchandise returned $60.
20		Made sales on account to members $820, terms n/30. The cost of the merchandise sold was $550.
21		Paid Woods Sportswear in full.
27		Granted an allowance to members for clothing that did not fit properly $70.
30		Received payments on account from members $1,370.

Journalize the April transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Using T-accounts, enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries posted in part a. For accounts that have a zero balance select "4/30 Bal." from the list and enter 0 for the amount.)

Cash

Accounts receivable

Inventory

Common Stock

Sales revenue

Sales return and allowance

Cost of goods sold

Answer 1

Journal entries for the month of April:

Following are the T accounts for the month of April: