Answered step by step
Verified Expert Solution
Question
1 Approved Answer
how do you record these following transactions using a prepetual inventory system? Problem 6-2 At the beginning of the current season on April 1, the
how do you record these following transactions using a prepetual inventory system?
Problem 6-2 At the beginning of the current season on April 1, the records of Monty Pro Shop showed Cash $3,240, Inventory $3,500; and Common Stock $6,740. The following transactions occurred during April 2017 Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,800. 9 Received credit from Arnie Co. for merchandise returned $400. 10 Sold merchandise on account to members $1,320. The merchandise sold had a cost of $810. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,050. 14 Paid Amie Co. in full 17 Received credit from Woods Sportswear for merchandise returned $50. 20 Made sales on account to members $900. The cost of merchandise sold was $550. 21 Paid Woods Sportswear in full 30 Received payments on account from members $1,210. Record the April transactions using a perpetual Inventory system. (Enter negative amounts using alther a negative sign preceding the number eg or parentheses e.g. (45).) Assets - Liabilities Stockholders' Equity Retained Earnings Cash + Accts. Rec. + Inv. - Accts. Pay. + + Rev. . Exp. Common Stock $6,740 Apr. $3,500 1800 T (18 PL T (400) T Sales revenue (510) Cost of goods sold (1050 T Sales revenue (350) Cost of goods sold (1050 30 T 1210 T (1210) T 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