At the beginning of April, the ledger of Rose showed Cash of $9,000 and Common Stock

of $9,000. Rose Company completed these transactions in April.

USE the Chart of Accounts below!

Apr. 2 Purchased merchandise on account from Kwon Supply Co. $6,900, terms 1/10, n/30. (Terms and discounts apply when paying not when ordering).

4 Sold merchandise on account $6,500, FOB destination, terms 1/10, n/30.

(The cost of the merchandise sold was $3,900.) Two entries are needed one for the SALE at $6,500, the other entry for your cost and reduction of INV).

5 Paid $240 freight on April 4 sale.

(See the Chart of Accounts below so that you use the correct account name.)

6 Received credit from Kwon Supply Co. for merchandise returned $500.

(a return is the opposite (in terms of debits and credit) of the purchase)

11 Paid Kwon Supply Co. in full, less discount.

(make sure you have the correct amount that you owe Kwon.)

13 Received collections in full, less discounts, from customers billed on April 4.

(Remember you are the seller collecting $$ and granting any discount on the sale

14 Purchased merchandise for cash $3,800.

16 Received refund from supplier for returned goods on cash purchase of April 14, $500.

(a partial reversal of the purchase on the 14^th)

18 Purchased merchandise from Davis Co. $4,500, FOB shipping point, terms 2/10, n/30.

(The shipping cost - FOB Shipping Point as in buyer pays is the next transaction.)

20 Paid freight on April 18 purchase $100.

23 Sold merchandise for cash $7,400. The merchandise sold had a cost of $4,120.

(When you sell more you need 2 entries).

26 Purchased merchandise for cash $2,300.

27 Paid Davis Distributors in full, less discount. (Remember that as the buyer any discount is basically a reduction to your INV cost).

29 Made refunds to cash customers for defective merchandise $90.

(The returned merchandise had a fair value of $30.) (If you made 2 entries to sell it you need 2 entries to refund basically a partial reversal of the sale)

30 Sold mdse on account $3,700, terms n/30. The cost of the mdse sold was $2,800.

The chart of accounts for this assignment includes: Cash, Accts Recbl, Inventory, Accts Pyble, Common Stock, Sales Revenue, Sales Return & Allow, Sales Discounts, Cost of Goods Sold, and Freight-Out.

Instructions

(a) Journalize these transactions.

Instructors note: discount is applied when payment is received.