Question

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:

DATE		TRANSACTIONS
2019
Sept.	2	Purchased ski boots for $4,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
	3	Purchased skis for $10,200 from Alaska Supply Company, Invoice 5916; terms 2/10, n/30.
	7	Received Credit Memorandum 165 for $800 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 $3,000 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 $2,760 plus a freight charge of $220 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
	23	Purchased ski pants for $1,250 from Swenson Ski Goods, Invoice 528, terms n/30.
	25	Received Credit Memorandum 245 for $200 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 $4,600 plus a freight charge of $200 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:

Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 2019.

Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.

Prepare a schedule of accounts payable.

GENERAL LEDGER ACCOUNTS

101	Cash, $23,000 Dr.
201	Accounts Payable
501	Purchases
502	Freight In
503	Purchases Returns and Allowances
504	Purchases Discounts

ACCOUNTS PAYABLE LEDGER ACCOUNTS

Alaska Supply Company
Cold Mountain Clothing Company
Colorado Ski Shop
Swenson Ski Goods

Analyze:
What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

Answer 1

	Journal Entry
		Debit	Credit
02.09.2019	Purchase A/c	4600
	Freight Expense A/c	310
	To Colorado Ski Shop		4910
03.09.2019	Purchase A/c	10200
	To Alaska Supply Company A/c		10200
07.09.2019	Colorado Ski Shop A/c	800
	To Purchase Return		800
11.09.2019	Purchase A/c	3000
	To Cold mountain clothing company		3000
12.09.2019	Alaska Supply Company A/c	10200
	To Cash		9996
	To cash discount		204
	10200*2%
22.09.2019	Purchase A/c	2760
	Freight A/c	220
	To Alaska Supply Company A/c		2980
23.09.2019	Purchase A/c	1250
	To Swenson Ski Goods A/c		1250
25.09.2019	Swenson Ski Goods A/c	200
	To Purchase Return		200
27.09.2019	Purchase A/c	4600
	Freight A/c	200
	To Colorado Ski Shop A/c		4800
30.09.2019	Colorado Ski Shop A/c	4110
	To Cash		4110
	4910-800
	Ledger Account
Cash		Account No : 101
Date	Debit	Credit	Balance
Sept 1,2019	23000		23000
Sept 12,2019		9996	13004
Sept 30,2019		4110	8894
Accounts Payable		Account No : 201
Date	Debit	Credit	Balance
2-Sep-19		4910	4910
3-Sep-19		10200	15110
Sept 7,2019	800		14310
Sept 11,2019		3000	17310
Sept 12,2019	10200		7110
Sept 22,2019		2980	10090
Sept 23,2019		1250	11340
Sept 25,2019	200		11140
Sept 27,2019		4800	15940
Sept 30,2019	4110		11830
Purchases		Account No : 501
Date	Debit	Credit	Balance
2-Sep-19	4600		4600
3-Sep-19	10200		14800
Sept 11,2019	3000		17800
Sept 22,2019	2760		20560
Sept 23,2019	1250		21810
Sept 27,2019	4600		26410
Freight In		Account No : 502
Date	Debit	Credit	Balance
2-Sep-19	310		310
Sept 22,2019	220		530
Sept 27,2019	200		730
Purchases Returns and Allowances		Account No : 503
Date	Debit	Credit	Balance
7-Sep-19	800		800
25-Sep-19	200		1000
Purchases Discounts		Account No : 504
Date	Debit	Credit	Balance
12-Sep-19	204		204
Alaska Supply Company		Terms: 3/10,n/30
Date	Debit	Credit	Balance
3-Sep-19		10200	10200
12-Sep-19	10200		0
22-Sep-19		2980	2980
Cold Mountain Clothing Company		Terms: n/30
Date	Debit	Credit	Balance
11-Sep-19		3000	3000
Colorado Ski Shop		Terms: n/30
Date	Debit	Credit	Balance
2-Sep-19		4910	4910
7-Sep-19	800		4110
27-Sep-19		4800	8910
30-Sep-19	4110		4800
Swenson Ski Goods		Terms: n/30
Date	Debit	Credit	Balance
23-Sep-19		1250	1250
25-Sep-19	200		1050
		BIG COUNTRY SKI SHOP
		Schedule of Accounts Payable
		30-Sep-19
		Alaska Supply Company	2980
		Cold Mountain Clothing Company	3000
		Colorado Ski Shop	4800
		Swenson Ski Goods	1050
		Total	11830
What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.
Portion of clothing items purchased	4600+3000+1250+4600
	13450