Question

At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $2,810; Inventory $3,500; and Common Stock $6,310. The following transactions were completed during April 2017.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $2,300, terms 4/10, n/60.
7		Paid freight on Arnie purchase $80.
9		Received credit from Arnie Co. for merchandise returned $500.
10		Sold merchandise on account to members $1,490, terms n/30. The merchandise sold had a cost of $780.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,060, terms 1/10, 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 $970, 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 $80.
30		Received payments on account from members $1,240.

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. Round answers to 0 decimal places, e.g. 5,275.)

Answer 1

JOURNAL
DATE	ACCOUNTS AND EXPLANATION	AMOUNT DR	AMOUNT CR
5-Apr	MERCHANDISE INVENTORY	$            2,300
	TO ACCOUNTS PAYABLE		$            2,300
7-Apr	MERCHANDISE INVENTORY	$                  80
	TO CASH		$                  80
9-Apr	ACCOUNTS PAYABLE	$                500
	TO MERCHANDISE INVENTORY		$                500
10-Apr	ACCOUNT RECEIVABLE	$            1,490
	TO SALES		$            1,490
10-Apr	COGS	$                780
	TO MERCHANDISE INVENTORY		$                780
12-Apr	MERCHANDISE INVENTORY	$            1,060
	TO ACCOUNTS PAYABLE		$            1,060
14-Apr	ACCOUNTS PAYABLE	$            1,800
	TO CASH		$            1,800
17-Apr	ACCOUNTS PAYABLE	$                  60
	TO MERCHANDISE INVENTORY		$                  60
20-Apr	ACCOUNT RECEIVABLE	$                970
	TO SALES		$                970
20-Apr	COGS	$                550
	TO MERCHANDISE INVENTORY		$                550
21-Apr	ACCOUNTS PAYABLE	$            1,000
	TO CASH		$            1,000
27-Apr	ALLOWANCE FOR MEMBERS	$                  80
	TO ACCOUNTS RECEIVABLE		$                  80
30-Apr	ALLOWANCE FOR MEMBERS	$                890
	TO ACCOUNTS RECEIVABLE		$                890