Question

At the beginning of the current season on April 1, the ledger of Sandhill Pro Shop showed Cash $2,950; Inventory $3,500; and Common Stock $3,450. The following transactions were completed during April 2022.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $2,500, terms 2/10, 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 $1,340, terms n/30. The merchandise sold had a cost of $920.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,050, terms 2/10, n/30.
14		Paid Arnie Co. in full.
17		Received credit from Woods Sportswear for merchandise returned $50.
20		Made sales on account to members $910, 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 $1,400.

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.)

Answer 1

Journal entry

Date	General Journal	Debit	Credit
Apr 5	Merchandise inventory	2500
	Account payable- Arnie Co		2500
Apr 7	Merchandise inventory	80
	Cash		80
Apr 9	Account payable-Arnie Co	700
	Merchandise inventory		700
Apr 10	Account receivable-Members	1340
	Sales revenue		1340
	Cost of goods sold	920
	Merchandise inventory		920
Apr 12	Merchandise inventory	1050
	Account payable-Wood sportswear		1050
Apr 14	Account payable-Arnie Co	2500
	Cash (2500*98%)		2450
	Merchandise inventory		50
Apr 17	Account payable-Woods sportswear	50
	Merchandise inventory		50
Apr 20	Account receivable-Members	910
	Sales revenue		910
	Cost of goods sold	550
	Merchandise inventory		550
Apr 21	Account payable-Wood sportswear	1050
	Cash (1050*98%)		1029
	Merchandise inventory		21
Apr 27	Sales return and allowance	70
	Account receivable-members		70
Apr 30	Cash	1400
	Account receivable-Members		1400