ew Policies ow Attempt History urrent Attempt in Progress UN 9 10 11 Monty Corp.completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Monty showed Cash of $4,500 and Common Stock of $4,500. May 1 Purchased merchandise on account from Gray's Wholesale Supply $4,200, terms 2/10,n/30, 2 Sold merchandise on account $2,100, terms 1/10,n/30. The cost of the merchandise sold was $1,300. 5 Received credit from Gray's Wholesale Supply for merchandise returned $350. Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2. Paid Gray's Wholesale Supply in full, less discount Purchased supplies for cash $350. 12 Purchased merchandise for cash $1.400 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Amland Distributors $1.300, FOB shipping point terms 2/10, 1/30, 19 Paid freight on May 17 purchase $140. Sold merchandise for cash $3,500. The merchandise sold had a cost of $2,100. Purchased merchandise on account from Horvath, Inc. $650, FOB destination, terms 2/10,1130. 27 Paid Amland Distributors in full, less discount. Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $20 Sold merchandise on account $1,000,terms n/30. The cost of the merchandise sold was $600. 15 24 25 29 31 Monty Corps chart of accounts includes the following: No. 101 Cash, No 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable. No. 311 Common Stock, No. 401 Sales Revenue No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Datu Account Tities and Explanation Debit Credik Inventory 4200 Supplies Expense 420x 2 Accounts Receivable 2100 2106 Sales Reven (To record credit sale) Cost of Goods Sold tay2 1300 1300 Inventory (To record cost of merchandise sold) Accounts Payable 300 30C Inventory Cash 2079 Sales Discounts 25 2106 Accounts Receivable 300 Vio Accounts Payable 78 Inventor Cach 350 11 Sookies 153 Cash 1500 150C Cash 150 Ca tory 1300 Inventory 15 m 1 y Inventory 1300 Accounts Payable lay 19 Inventory 130 130 ty 24 Cash 3200 3200 Sales Rowe (To record cash sale) Cost of Goods Sold 24 v 2000 (To record cost of merchandise sold) itory wy25 Adat Account Pau vendary C 2 (To record merchandise returned) Colt Good To record cost of merchandise returned) Account Cost of Goods Sold To record credit sale) Cow Goods 560 . (To record cost of merchandise sold
