Data for Grand Slam Tennis Shop are presented in P5-4B.

In P5-4B.

Apr. 2 Purchased racquets and balls from Roberts Inc. for $5,800, terms 2/10, n/30, FOB shipping point.

3 The appropriate party paid $160 freight on the purchase from Roberts on April 2.

5 Received credit of $100 from Roberts for a damaged racquet that was returned.

9 Purchased supplies for $1,130 cash from Discount Supplies Limited.

11 Paid Roberts in full.

13 Purchased tennis shoes from Niki Sports Ltd. for $1,560 cash, FOB shipping point.

16 The appropriate party paid $115 freight on the purchase from Niki on April 13.

18 Received a $110 cash refund from Niki Sports for damaged merchandise that was returned.

20 Sold merchandise to members for $11,100 on account, terms n/30. The cost of the merchandise was $6,660.

21 Some of the merchandise purchased on April 20, with a sales price of $1,000 and a cost of $600, was returned by members. It was restored to inventory.

23 Purchased equipment for use in the business from DomCo Ltd. for $11,700, terms n/45.

25 Sold merchandise to members for $9,800, terms n/30. The cost of the merchandise was $5,880.

27 Received cash payments on account from members, $9,800.

28 Granted a $150 sales allowance on account to a member for slightly torn tennis clothing. No merchandise was returned.

Instructions

(a) Record the April transactions for Grand Slam Tennis Shop, assuming it uses a periodic inventory system instead of a perpetual inventory system. Round all calculations to the nearest dollar.

(b) Set up T accounts, enter the opening balances, and post the transactions prepared in part (a).

(c) Prepare an unadjusted trial balance as at April 30.

(d) The inventory count on April 30 determined that merchandise costing $11,571 was on hand. Prepare the adjusting journal entry needed at the end of the period to update the Inventory and Cost of Goods Sold accounts.