J. Ackbar, a former professional tennis star, operates Ackbar's Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Ackbar's Tennis Shop showed Cash $2,200, Inventory $1,800, and Common Stock $4,000. The following transactions were completed during April.

Apr. 4 Purchased racquets and balls from Jay-Mac Co. $760, FOB shipping point, terms 2/10, n/30.

6 Paid freight on purchase from Jay-Mac Co. $40.

8 Sold merchandise to members $1,150, terms n/30. The merchandise sold had a cost of $790.

10 Received credit of $60 from Jay-Mac Co. for a racquet that was returned.

11 Purchased tennis shoes from Venus Sports for cash, $420.

13 Paid Jay-Mac Co. in full.

14 Purchased tennis shirts and shorts from Everett Sportswear $800, FOB shipping point, terms 3/10, n/60.

15 Received cash refund of $50 from Venus Sports for damaged merchandise that was returned.

17 Paid freight on Everett Sportswear purchase $30.

18 Sold merchandise to members $980, terms n/30. The cost of the merchandise sold was $520.

Apr. 20 Received $600 in cash from members in settlement of their accounts.

21 Paid Everett Sportswear in full.

27 Granted an allowance of $40 to members for tennis clothing that did not fit properly.

30 Received cash payments on account from members, $820.

The chart of accounts for the tennis shop 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.

Instructions

(a) Journalize the April transactions using a perpetual inventory system.

(b) Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for the journal reference.)

(c) Prepare a trial balance on April 30, 2014.