Begin by journalizing the transactions.

Jan. 1

Purchased 5 T-shirts at $15 each and paid cash.

Jan. 2

Sold 2 T-shirts for $22 each, total cost of $30. Received cash.

Jan. 3

Purchased 90 T-shirts on account at $18 each. Terms 3/10, n/30.

Jan. 7

Paid the supplier for the T-shirts purchased on January 3, less discount.

Jan. 8

Realized 3 T-shirts from the January 1 order were printed wrong and returned them for a cash refund.

Jan. 10

Sold 60 T-shirts on account for $22 each, total cost of $1,080. Terms 4/15, n/45.

Jan. 12

Received payment for the T-shirts sold on account on January 10, less discount.

Jan. 14

Purchased 120 T-shirts on account at $15 each. Terms 1/15, n/30.

Jan. 18

Water Way Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $10 purchase allowance.

Jan. 20

Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount.

Jan. 21

Sold 70 T-shirts on account for $22 each, total cost of $1,088. Terms 4/20, n/30.

Jan. 23

Received a payment on account for the T-shirts sold on January 21, less discount.

Jan. 25

Purchased 310 T-shirts on account at $18 each. Terms 1/10, n/30, FOB shipping point.

Jan. 27

Paid freight associated with the January 25 purchase, $31.

Jan. 29

Paid for the January 25 purchase, less discount.

Jan. 30

Sold 270 T-shirts on account for $22 each, total cost of $4,580. Terms 1/10, n/30.

Jan. 31

Received payment for the T-shirts sold on January 30, less discount.

Here are the following accounts you must use.

Cash; Accounts Receivable; Merchandise Inventory; Estimated Returns Inventory; Office Supplies; Prepaid Rent; Land; Building; Accumulated DepreciationBuilding;Canoes; Accumulated DepreciationCanoes;Accounts Payable; Utilities Payable; Telephone Payable; Wages Payable; Refunds Payable; Interest Payable; Unearned Revenue; Notes Payable;Winter,Capital; Income Summary; Sales Revenue; Canoe Rental Revenue; Cost of Goods Sold; Rent Expense; Wages Expense; Utilities Expense; Telephone Expense; Supplies Expense; Depreciation ExpenseBuilding;Depreciation ExpenseCanoes;Interest Expense.