Answered step by step
Verified Expert Solution
Question
1 Approved Answer
First Choice Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, First Choices ledger showed Cash $7,400;
First Choice Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, First Choices ledger showed Cash $7,400; Accounts Receivable $1,600; Inventory $3,500; Common Shares $8,600; and Retained Earnings $3,900. First Choice uses a perpetual inventory system.
ONLY NEED MAY 9 AND MAY 31
May | 1 | Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,000, terms 1/10, n/30, FOB shipping point. | ||
3 | Freight charges of $140 were paid by the appropriate party on the merchandise purchased on May 1. | |||
4 | Sold merchandise on account to Ry Company for $3,500, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,200. | |||
7 | Freight charges of $110 were paid by the appropriate party on the May 4 sale. | |||
8 | Received a $200 credit from Depot Wholesale Supply when merchandise was returned. | |||
9 | Paid Depot Wholesale Supply in full. | |||
11 | Purchased supplies for $400 cash. | |||
14 | Received payment in full from Ry Company for merchandise sold on account on May 4. | |||
15 | Collected $1,000 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts. | |||
18 | Purchased merchandise from Harlow Distributors Inc. for $1,800, terms n/30, FOB destination. | |||
21 | Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise. | |||
22 | Sold merchandise to various customers for $5,900 cash. The cost of the merchandise was $3,700. | |||
29 | Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $50. It was restored to inventory. | |||
31 | A physical inventory count was taken and determined that there was $5,100 of inventory on hand. Prepare any adjustment required. |
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