P5.8A (LO 7) Financial Statement At the beginning of the current season on April 1, the ledger of Gage Pro Shop showed Cash $3,000, Inventory $4,000, and Owner's Capital $7,000. These transactions occurred during April 2020. Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10, n/60. Paid freight on Tiger Co. purchases $50. 9 Received credit from Tiger Co. for merchandise returned $100. Sold merchandise on account to customers $600, terms n/30. Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear $450, terms 1/10, n/30. Paid Tiger Co. in full. 17 Received credit from Classic Sportswear for merchandise returned $50. 20 Made sales on account to customers $600, terms n/30. Apr. 5 10 12 14 Paid Classic Sportswear in full. 27 Granted credit to customers for clothing that had flaws $35. 30 Received payments on account from customers $600. 21 The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Paya- ble, Owner's Capital, Sales Revenue, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-In. Instructions a. Journalize the April transactions using a periodic inventory system. b. Using T-accounts, enter the beginning balances in the ledger accounts and post the April transactions. c. Prepare a trial balance on April 30, 2020. d. Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $4,824