Marks Music is a store that buys and sells musical instruments and uses a perpetual inventory system Transactions for the business are shown below Nov 2 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $800 each, terms 1 10, n 60 4 Made a cash sale of two keyboards for a total invoice price of $2,700 The cost of each keyboard was $850 5 Received a credit from Western Acoustic Inc for the return of an acoustic guitar, which was defective The original invoice price was $475 and the guitar had been purchased on account 7 One of the keyboards from the cash sale of Nov 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument 8 Purchased store supplies for cash from a stationery store The price of the supplies is $150 10 Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,900 Terms are 1 10, n 60 The trumpet had cost Marks Music $1,420 10 Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov 2 13 Purchased two saxophones from Yamaha Canada Inc on account The invoice price was $2,400 for each saxophone Terms are 1 10, n 30 16 Returned to Yamaha Canada Inc one of the saxophones purchased on Nov 13, as it was the wrong model Received a credit from Yamaha for the full purchase price 20 Received a cheque for the appropriate amount from the Toronto Regional Band for the purchase of Nov 10 22 Paid balance owing to Yamaha Canada Inc Prepare the journal entries to record Marks Music transactions assuming the company uses the earnings approach to recognize revenue (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Record journal entries in the order presented in the problem ) Date Account Titles and Explanation Debit Credit Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 (Cash sale ) Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 (To record cost of goods sold ) Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 Debit Credit Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 (To record cash refund for goods returned ) Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 (To record cost of goods returned ) Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 (To record sales on account ) Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 (To record cost of goods sold ) Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 (Payment on account ) Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22 Nov 20 Nov 2Nov 4Nov 5Nov 7Nov 8Nov 10Nov 13Nov 16Nov 20Nov 22

Question

Marks Music is a store that buys and sells musical instruments and uses a perpetual inventory system  Transactions for the business are shown below  Nov  2 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $800 each, terms 1 10, n 60  4 Made a cash sale of two keyboards for a total invoice price of $2,700  The cost of each keyboard was $850  5 Received a credit from Western Acoustic Inc  for the return of an acoustic guitar, which was defective  The original invoice price was $475 and the guitar had been purchased on account  7 One of the keyboards from the cash sale of Nov  4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument  8 Purchased store supplies for cash from a stationery store  The price of the supplies is $150  10 Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,900  Terms are 1 10, n 60  The trumpet had cost Marks Music $1,420  10 Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov  2  13 Purchased two saxophones from Yamaha Canada Inc  on account  The invoice price was $2,400 for each saxophone  Terms are 1 10, n 30  16 Returned to Yamaha Canada Inc  one of the saxophones purchased on Nov  13, as it was the wrong model  Received a credit from Yamaha for the full purchase price  20 Received a cheque for the appropriate amount from the Toronto Regional Band for the purchase of Nov  10  22 Paid balance owing to Yamaha Canada Inc  Prepare the journal entries to record Marks Music transactions assuming the company uses the earnings approach to recognize revenue  (Credit account titles are automatically indented when the amount is entered  Do not indent manually  If no entry is required, select  No Entry  for the account titles and enter 0 for the amounts  Record journal entries in the order presented in the problem ) Date Account Titles and Explanation Debit Credit Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 (Cash sale ) Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 (To record cost of goods sold ) Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 Debit Credit Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 (To record cash refund for goods returned ) Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 (To record cost of goods returned ) Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 (To record sales on account ) Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 (To record cost of goods sold ) Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 (Payment on account ) Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22 Nov  20 Nov  2Nov  4Nov  5Nov  7Nov  8Nov  10Nov  13Nov  16Nov  20Nov  22

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Nov. 2		Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $800 each, terms 1/10, n/60.
4		Made a cash sale of two keyboards for a total invoice price of $2,700. The cost of each keyboard was $850.
5		Received a credit from Western Acoustic Inc. for the return of an acoustic guitar, which was defective. The original invoice price was $475 and the guitar had been purchased on account.
7		One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument.
8		Purchased store supplies for cash from a stationery store. The price of the supplies is $150.
10		Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,900. Terms are 1/10, n/60. The trumpet had cost Marks Music $1,420.
10		Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov. 2.
13		Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $2,400 for each saxophone. Terms are 1/10, n/30.
16		Returned to Yamaha Canada Inc. one of the saxophones purchased on Nov. 13, as it was the wrong model. Received a credit from Yamaha for the full purchase price.
20		Received a cheque for the appropriate amount from the Toronto Regional Band for the purchase of Nov. 10.
22		Paid balance owing to Yamaha Canada Inc.

Date	Account Titles and Explanation	Debit	Credit
Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22

Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22

	(Cash sale.)
Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22

	(To record cost of goods sold.)


Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22

	(To record cost of goods sold.)
Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22


	(Payment on account.)
Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22

Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22

Nov. 20


Nov. 2Nov. 4Nov. 5Nov. 7Nov. 8Nov. 10Nov. 13Nov. 16Nov. 20Nov. 22

Marks Music is a store that buys and sells musical instruments and uses a perpetual inventory system.

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