Oriole Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Oriole showed Cash of $5,000 and Owner's Capital of $5,000. May N 5 Purchased merchandise on account from Braun's Wholesale Supply $4,100, terms 2/10, 1/30. Sold merchandise on account $1,500, terms 1/10, 1/30. The cost of the merchandise sold was $1,400. Received credit from Braun's Wholesale Supply for merchandise returned $250. Received collections in full, less discounts, from customers billed on sales of $1,500 on May 2. Paid Braun's Wholesale Supply in full, less discount. Purchased supplies for cash $300. Purchased merchandise for cash $1,500. Received refund for poor quality merchandise from supplier on cash purchase $150. Purchased merchandise from Valley Distributors $1,400, FOB shipping point, terms 2/10, n/30 10 11 12 15 17 19 24 25 Paid freight on May 17 purchase $140. Sold merchandise for cash $3,300. The merchandise sold had a cost of $2,000. Purchased merchandise on account from Lumley, Inc. $550, FOB destination, terms 2/10, n/30. Paid Valley Distributors in full, less discount. 27 29 Made refunds to cash customers for defective merchandise $80. The returned 270. 19 Paid freight on May 17 purchase $140. 24 Sold merchandise for cash $3,300. The merchandise sold had a cost of $2,000. 25 Purchased merchandise on account from Lumley, Inc. $550, FOB destination, terms 2/10, n/30. 27 29 Paid Valley Distributors in full, less discount. Made refunds to cash customers for defective merchandise $80. The returned merchandise had a fair value of $20. Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. 31 Oriole Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. May 2 Cost of Goods Sold 1,400 Inventory 1,400 (To record cost of merchandise sold) May 5 Accounts Payable 250 May 10 Accounts Payable 3,850 X Purchase Discounts 77 Cash 3,773 May 11 Supplies 300 Cash 300 s Accounts Receivable Date Explanation No. 112 Balance Ref. Debit Credit May 2 J1 1,500 1,500 May 9 J1 1,485 15 > May 31 J1 1,500 1,500 y. Inventory Date No. 120 Balance Explanation Ref. Debit Credit May 1 J1 4,100 4,100 May 2 J1 1,400 2,700 X May 5 J1 1,500 3,950 EX May 10 J1 Ull 3 EX May 12 31 1,500 3,950 May 15 31 150 3,800 May 17 31 1,400 5,200 X May 12 J1 1,500 3,950 J1 150 May 15 v 3,800 > > x May 17 01 1,400 5,200 X May 19 01 so 80 X . May 24 J1 2,000 3,200 x May 25 J1 550 3,750 x May 27 J1 1,372 550 x May 29 J1 20 > x May 31 31 500 3,270 ment J1 300 300 May 11 Accounts Payable Date Explanation No. 201 Balance Ref. Debit Credit May J1 4,100 4,100 May 5 J1 250 3,850 X May 10 31 3,73 3,773 May 177 J1 1,400 1,400 May 25 J1 550 1,950 May 27 31 1,372 550 Owner's Capital Date Explanation No. 301 Balance Ref. Debit Credit May 1 Balance 5,000 Sales Revenue Date Explanation No. 401 Balance Ref. Debit Credit May 2 J1 1,500 1,500 D May 24 J1 3.300 4.800 X May 27 v J1 1,372 550 Owner's Capital Date Explanation No. 301 Balance Ref. Debit Credit May 1 Balance 5,000 No. 401 Sales Revenue Date Explanation Ref. Debit Credit Balance May 2 J1 1,500 1,500 > X SI May 24 J1 3.300 4,800 IS K May 31 J1 1,500 6,300 Sales Returns and Allowances Date Explanation Ref. No. 412 Balance Debit Credit May 29 J1 80 80 Sales Discounts Date Explanation No. 414 Ref. Debit Credit Balance May 31 15 15 Cost of Goods Sold Date Explanation No. 505 Ref. Debit Credit Ralance ORIOLE HARDWARE STORE Income Statement (Partial) For the Month Ended May 31, 2020 v Gross Profit Sales Revenue 6,300 Less Sales Returns and Allowances (80) Sales Discounts (15) (95) Net Sales 6,205 K Cost of Goods Sold (3,880) 'Gross Profit 2,325 Click if you would like to Show Wart for thi
