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Mike's Bike Shop has the following chart of accounts: Assets 111 Cash 113 Accounts Receivable (A/R) 114 Allowance for Doubtful Accounts 115 Merchandise Inventory 116
Mike's Bike Shop has the following chart of accounts: Assets 111 Cash 113 Accounts Receivable (A/R) 114 Allowance for Doubtful Accounts 115 Merchandise Inventory 116 Prepaid Insurance 118 Supplies 121 Equipment 123 Accum. Deprec. - Equipment Revenue 411 Sales 412 Sales Returns and Allowances 413 Sales Discounts Cost of Goods Sold 511 Purchases 512 Freight In 513 Purchases Returns & Allowances Liabilities 212 Accounts Payable (A/P) 215 Salaries Pavable 218 Sales Tax Payable 220 Unearned Rent 621 Salary Expense 626 Utilities Expense 627 Rent Expense 630 Depreciation Expense-Equipment 635 Bad Debt Expense 650 Miscellaneous Expense Owner's Equity 311 M. Ross, Capital 312 M. Ross, Drawing Record the following transactions for May, using a sales journal, page 7; a purchases journal, page 9; a cash receipts journal, page 10; a cash payments journal, page 21; and a general journal, page 12. Sales tax rate is 8%. May 1M. Ross, the owner, invested an additional $7,500 in the business. 1 Sold merchandise on account to South River Mall Security, $1,250, invoice no. 221, terms 2/10 N30. Bought merchandise on account from Huffy, S2,750, invoice D873, dated May 1; terms 1/10 N30; freight prepaid and added to the invoice, S85.50. Invoices totals $2,835.50. 3 4Issued check no. 1449 to pay rent for the current month, $700. 5 Received check from Dana's Day Care for $396 in payment of $400 invoice from the previous month less discount. 5 Sold merchandise on account to Greensville Police Department, invoice no. 222, S1,500, terms 2/10 N30
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