Question

Adam Nichols, a former disc golf star, operates Concord Corporation. At the beginning of the current season on April 1, the ledger of Concord Corporation showed Cash $2,000, Inventory $2,600, and Common Stock $4,600. The following transactions were completed during April.

Apr. 5		Purchased golf discs, bags, and other inventory on account from Rayford Co. $1,000, FOB shipping point, terms 2/10, n/60.
7		Paid freight on the Rayford purchase $50.
9		Received credit from Rayford Co. for merchandise returned $200.
10		Sold merchandise on account for $860, terms n/30. The merchandise sold had a cost of $516.
12		Purchased disc golf shirts and other accessories on account from Galaxy Sportswear $650, terms 1/10, n/30.
14		Paid Rayford Co. in full, less discount.
17		Received credit from Galaxy Sportswear for merchandise returned $50.
20		Made sales on account for $640, terms n/30. The cost of the merchandise sold was $300.
21		Paid Galaxy Sportswear in full, less discount.
27		Granted an allowance to customers for clothing that was flawed $20.
30		Received payments on account from customers $910.

The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold.

(a)

Journalize the April transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Answer
Date	Account Titles and Explanation	Debit	Credit
Apr. 5	Merchandise Inventory	$     1,000
	Accounts Payable		$ 1,000
7	Merchandise Inventory	$          50
	Cash		$       50
9	Accounts Payable	$        200
	Merchandise Inventory		$     200
10	Accounts Receivable	$        860
	Sales		$     860
	Cost of Goods Sold	$        516
	Merchandise Inventory		$     516
12	Merchandise Inventory	$        650
	Accounts Payable		$     650
14	Accounts Payable ($1,000- $200)	$        800
	Merchandise Inventory (800 X 2%)		$       16
	Cash		$     784
17	Accounts Payable	$          50
	Merchandise Inventory		$       50
20	Accounts Receivable	$        640
	Sales		$     640
	Cost of Goods Sold	$        300
	Merchandise Inventory		$     300
21	Accounts Payable ($650- $50)	$        600
	Merchandise Inventory ($600 X 1%)		$         6
	Cash		$     594
27	Sales Returns and Allowances	$          20
	Accounts Receivable		$       20
30	Cash	$        910
	Accounts Receivable		$     910