Graded Assignment 3 - Chapters 5, 6, and 7 Question 5 of 12 - 130 III Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May. Piper's ledger showed Cash $8,800; Accounts Receivable $2,800; Inventory $4.400: Common Shares $9,600; and Retained Earnings $6,400. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system, 1 May 3 4 7 8 9 11 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,240, terms 1/10,n/30,FOB shipping point Freight charges of $164 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $4,400, terms n/30, FOB destination. The cost of the merchandise was $3,300. Freight charges of $104 were paid by the appropriate party on the May 4 sale. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. Purchased supplies for $480 cash. Received payment in full from Yip Company for merchandise sold on account on May 4. Collected $1.120 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. Purchased merchandise from Harlow Distributors Inc. for $3,200, terms n/30, FOB destination. Freight of $56 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $8,400 cash. The cost of the merchandise was $4,700. Paid a $112 cash refund to customers for returned merchandise. The cost of the returned merchandise was $64. It was restored to inventory 14 15 18 21 22 29 1 May 3 4 7 8 Question 5 of 12 -130 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,240, terms 1/10, 1/30, FOB shipping point Freight charges of $164 were paid by the appropriate party on the merchandise purchased on May 1 Sold merchandise on account to Vip Company for $4.400, terms n/30, FOB destination. The cost of the merchandise was $3,300. Freight charges of $104 were paid by the appropriate party on the May 4 sale. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full, 11 Purchased supplies for $480 cash 14 Received payment in full from Yip Company for merchandise sold on account on May 4. Collected $1,120 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. 18 Purchased merchandise from Harlow Distributors Inc. for $3,200, terms 1/30, FOB destination. Freight of $56 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $8,400 cash. The cost of the merchandise was $4,700. 29 Paid a $112 cash refund to customers for returned merchandise. The cost of the returned merchandise was $64. It was restored to inventory 31 A physical inventory count was taken and determined that there was $5,680 of inventory on hand. Prepare any adjustment required 15 21 22 Question 5 of 12 - / 30 E (Sale of goods on account) (Cost of goods sold recorded) + Graded Assignment 3- Chapters 5, 6, and 7 Question 5 of 12 -/30 > (Sale of goods) + Graded Assignment 3 - Chapters 5, 6, and 7 Question 5 of 12 - 130 (Sale of goods) (Cost of goods sold recorded) (Return of merchandise) (Return of merchandise, assuming goods are resaleable and returned to inventory) + Graded Assignment 3 - Chapters 5, 6, and 7 Question 5 of 12
