Pacific Restaurant Supply Ltd. was a restaurant supply company located in Vancouver, British Columbia. The company was formed in the mid-1980s by Anita Holt, and experienced considerable growth during its early years of operation. Pacific Restaurant Supply Ltd. carried all the necessary furnishings, equipment, utensils, and supplies that restaurants normally required. The majority of sales were made on credit, except for lower-priced items which were usually paid for in cash. Payment terms for all credit sales were 2/10, n/30. Holt totalled the cash sales monthly, maintained a periodic inventory system and prepared monthly financial statements.

Selected account balances from the March 31, 2002, balance sheet were as follows:

Accounts Receivable	$   7,213
Inventory	30,110
Accounts Payable	2,605

The following transactions, among others, occurred during April 2002:

APRIL 1         Sold merchandise on credit to Dennis’s Big Boy Restaurant for $5,644.

APRIL 2         Ordered from Baines Distributors, located in Victoria, BC, merchandise costing $12,900. Terms of sale were 10 EOM, FOB Vancouver.

APRIL 3         Dennis’s Big Boy Restaurant returned a bun warmer it had purchased on credit for $189. Dennis’s decided that the equipment was not needed. Holt reduced the amount accordingly.

APRIL 4         Received payment from Neighbors Chicken and Ribs. Neighbors had purchased a chicken rotisserie oven for $4,785 on March 26, 2002.

APRIL 5 Baines Distributors telephoned to confirm that the shipment had left earlier that day.

APRIL 8        Larry Leroux, owner of a recently opened oceanside bistro, purchased various kitchen supplies and utensils amounting to $895. Because the purchase was Leroux’s third since January, Holt allowed him to purchase the goods on credit. Holt calculated that the cost of the goods sold to Leroux was $567.

APRIL 9         Received goods from Baines Distributors ordered April 2.

APRIL 10       A freezer, costing $690, from the April 2 order, was damaged and, therefore, had to be returned. Baines Distributors reduced Pacific’s account accordingly.

APRIL 12       Paid Cope Cutlery Company $2,605 for a purchase made on March 14, 2002, with credit terms of 1/15, n/30.

APRIL 15       Received payment from Leroux for goods sold on April 8.

APRIL 16 Five natural gas-powered charcoal broilers, ordered from Armstead, Dodd and Nesbitt, were shipped. Total cost was $2,840, with credit terms of 4/10, n/60. Holt contracted with Holscher Trucking to deliver the broilers to her store. Shipping charges were $76 and would be paid in cash on the day goods were received. Holt remembered that she always took the generous discounts offered by Armstead, Dodd and Nesbitt.

APRIL 18       Received goods from Armstead, Dodd and Nesbitt.

APRIL 22       Sweeney Seafood purchased on credit a refrigerated display counter listing for $690.

APRIL 23       Holt received a call from Sweeney Seafood saying the front of the unit was scratched.

Rather than return the unit Sweeney Seafood accepted a $65 account reduction.

APRIL 24       Issued a cheque to Armstead, Dodd and Nesbitt for charcoal broilers.

APRIL 25       Dennis’s Big Boy Restaurant forwarded $1,800 in partial payment of its outstanding account. The remainder was promised to be paid in May.

APRIL 29       Received cheque from Sweeney Seafood as payment for refrigerated display counter.

APRIL 30       Cash sales for the month amounted to $3,890.

The physical inventory count after the close of business on April 30, 2002, revealed that the total cost of goods on hand was $39,133.

REQUIRED:

Record, using a super-T account, all opening balances, transactions and adjusting entries relating to merchandise activities for the month ending April 30, 2002. Also Determine the ending balance in accounts receivable and accounts payable and Prepare the revenue and cost of goods sold sections as they would appear on the income statement for the month ending April 30, 2002