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I need to find the ending balance in the merchandise inventory account Jared Payne owns Payne's Sneaker Shop. (Balances as of March 1 are provided
I need to find the ending balance in the merchandise inventory account
Jared Payne owns Payne's Sneaker Shop. (Balances as of March 1 are provided for the accounts receivable and general ledger accounts as follows: Durant, $250 Dr.; Lanham, \$550 Dr.; Pry, \$800 Dr.; Zamara, S550 Dr.; Cash, \$15,500 Dr.; Accounts Receivable, \$2,150 Dr.; Sneaker Rack Equipment, \$1,150 Dr.; J. Payne, Capital, \$35,000 Cr.; Sales, \$2,100 Cr. The balance of Merchandise Inventory is $12,000. Be sure to put beginning balances in your working papers.) The following transactions occurred in March: 201X March 1 Jared Payne invested an additional 10,500 in the store. 3 Sold $700 of merchandise on account to B. Durant, sales ticket no. 50; terms 4/10, n/30. The cost of the merchandise was $385. 4 Sold $500 of merchandise on account to Ron Lanham, sales ticket no. 51; terms 4/10,n/30. The cost of the merchandise was $375. 9 Sold $200 of merchandise on account to Jim Zamara, sales ticket no. 52 ; terms 4/10,n/30. The cost of the merchandise was $85. 10 Received cash from B. Durant in payment of March 3 transaction, sales ticket no. 50 , less discount. 20 Sold $3,000 of merchandise on account to Penny Pry, sales ticket no. 53; terms 4/10,n/30. The cost of the merchandise was $2,100. 22 Received cash payment from Ron Lanham in payment of March 4 transaction, sales ticket no. 51. 23 Collected cash sales, $3,400. The cost of the merchandise was $2,210. 24 Issued credit memorandum no. 1 to Penny Pry for $2,000 of merchandise returned from March 20 sales on account. The cost of the merchandise was $1,250. 26 Received cash from Penny Pry in payment of March 20, sales ticket no. 53. (Don't forget about the credit memo and discount.) 28 Collected cash sales, $6,200. The cost of the merchandise was $4,030. 30 Sold sneaker rack equipment for $150 cash. (Beware, sold at cost.) 30 Sold merchandise priced at $3,400, on account to Ron Lanham, sales ticket no. 54: terms 4/10,/30. The cost of the merchandise was $2,550. 31 Issued credit memorandum no. 2 to Ron Lanham for $595 of merchandise returned from March 30 transaction, sales ticket no. 54. The cost of the merchandise was $390 Step by Step Solution
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