Question

UPDATED , NEED ASAP

Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $4,610 and Owner’s Capital of $4,610.

May 1		Purchased merchandise on account from Braun's Wholesale Supply $4,200, terms 2/10, n/30.
2		Sold merchandise on account $2,100, terms 2/10, n/30. The cost of the merchandise sold was $1,250.
5		Received credit from Braun's Wholesale Supply for merchandise returned $400.
9		Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2.
10		Paid Braun's Wholesale Supply in full, less discount.
11		Purchased supplies for cash $380.
12		Purchased merchandise for cash $1,500.
15		Received refund for poor quality merchandise from supplier on cash purchase $150.
17		Purchased merchandise from Valley Distributors $1,300, FOB shipping point, terms 2/10, n/30.
19		Paid freight on May 17 purchase $160.
24		Sold merchandise for cash $3,420. The merchandise sold had a cost of $2,210.
25		Purchased merchandise from Lumley, Inc. $580, FOB destination, terms 2/10, n/30.
27		Paid Valley Distributors in full, less discount.
29		Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $40.
31		Sold merchandise on account $1,480, terms n/30. The cost of the merchandise sold was $580.

Renner Hardware’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner’s Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Journalize the transactions using a perpetual inventory system. (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	Particulars	Dr. Amt.	Cr. Amt.
1-May	Inventory	4,200.00
	Accounts Payable		4,200.00
	(To record the credit purchase)
2-May	Accounts Receivable	2,100.00
	Sales Revenue)		2,100.00
	(To record the credit sales)
	Cost of Goods Sold	1,250.00
	Inventory		1,250.00
	(To record cost of goods sold)
5-May	Accounts Payable	400.00
	Inventory		400.00
	(To record the purchase return)
9-May	Cash ($2,100 x 98%)	2,058.00
	Sales Discounts ($2,100 X 2%)	42.00
	Accounts Receivable		2,100.00
	(To record the cash received)
10-May	Accounts Payable	3,800.00
	Cash ($3,800 X 98%)		3,724.00
	Inventory		76.00
	(To record the amount paid)
11-May	Supplies	380.00
	Cash		380.00
	(tor record the supplies purchased)
12-May	Inventory	1,500.00
	Cash		1,500.00
	(To record the cash purchase)
15-May	Cash	150.00
	Inventory		150.00
	(To record the cash recd. For poor quality)
17-May	Inventory	1,300.00
	Accounts Payable		1,300.00
	(To record the credit purchase)
19-May	Inventory	160.00
	Cash		160.00
	(To record the freight paid)
24-May	Cash	3,420.00
	Sales Revenue)		3,420.00
	(To record the credit sales)
	Cost of Goods Sold	2,210.00
	Inventory		2,210.00
	(To record cost of goods sold)
25-May	Inventory	580.00
	Accounts Payable		580.00
	(To record the credit purchase)
27-Mar	Accounts Payable	1,300.00
	Cash ($1,300 X 98%)		1,274.00
	Inventory ($1,300 X 2%)		26.00
	(To record the amount paid)
29-Mar	Sales Return & Allowance	70.00
	Cash		70.00
	(To record the sales returns)
	Inventory	40.00
	Cost of Goods Sold		40.00
	(To record the cost of goods sold of returned goods)
31-May	Accounts Receivable	1,480.00
	Sales Revenue)		1,480.00
	(To record the credit sales)
	Cost of Goods Sold	580.00
	Inventory		580.00
	(To record cost of goods sold)