Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At the beginning of the current season on April 1, the ledger of Pharoah Pro Shop showed Cash $3,025; Inventory $4,025; and Common Stock $7,050.
At the beginning of the current season on April 1, the ledger of Pharoah Pro Shop showed Cash $3,025; Inventory $4,025; and Common Stock $7,050. The following transactions occurred during April 2022. Apr. 5 7 9 10 12 14 17 20 21 27 30 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,575, terms 4/10, n/60. Paid freight on Arnie Co. purchases $84. Received credit from Arnie Co. for merchandise returned $275. Sold merchandise on account to members $1,407, terms n/30. Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $872, terms 2/10, n/30. Paid Arnie Co. in full. Received credit from Woods Sportswear for merchandise returned $72. Made sales on account to members $851, terms n/30. Paid Woods Sportswear in full. Granted credit to members for clothing that did not fit properly $84. Received payments on account from members $1,281. (a) Your answer is correct. Journalize the April transactions using a periodic inventory system. (If no entry is required, select "No Entry" for the account titles and enter o 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 o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Apr. 5 v Purchases 1575 Accounts Payable 1575 Apr. 7 Freight-In 84 84 Cash TApr. 9 Accounts Payable 275 Purchase Returns and Allowances 275 Apr. 10 Accounts Receivable 1407 Sales Revenue 1407 Apr. 12 Purchases 8721 Accounts Payable 872 Apr. 14 Accounts Payable 1300 Cash 1248 Purchase Discounts 52 Apr. 17 Accounts Payable 72 Purchase Returns and Allowances 72 Apr. 20 Accounts Receivable 851 Sales Revenue 851 Apr. 21 Accounts Payable 800 Cash 784 Purchase Discounts 16 Apr. 27 Sales Returns and Allowances 841 Accounts Receivable 84 Apr. 30 Cash 1281 Accounts Receivable 1281 (b) Your answer is partially correct. Try again. Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries posted in part a. Round answers to o decimal places, e.g. 5,275. For accounts that have a zero balance select "4/30 Bal." from the list and enter o for the amount.) Cash 4/1 Bal. 3,0254/7 84 1248 4/14 - 4/21 M 784 4/30 Bal. 3025 x 4/1 Bal. 2116 Accounts Receivable 4/10 1407 || 4/27 84 4/20 851 ||4/30 1281 x X 4/30 Bal. 2258 4/30 Bal. 1265 Inventory 4/1 Bal X Accounts Payable X X X V X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started