Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pina Colada Hardware Store Inc.completed the following merchandising transactions in the month of May 2018. At the beginning of May, Pina Colada's ledger showed Cash

image text in transcribed
image text in transcribed
image text in transcribed
Pina Colada Hardware Store Inc.completed the following merchandising transactions in the month of May 2018. At the beginning of May, Pina Colada's ledger showed Cash of $8,800 and Common Shares of $8,800, May 1 2 S 9 10 11 12 15 17 19 24 25 27 Purchased merchandise on account from Hilton Wholesale Supply for $8,800, terms 2/10, 1/30. Sold merchandise on account for $4,400, terms 3/10,n/30. The cost of the merchandise sold was $3,030. Received credit from Hilton Wholesale Supply for merchandise returned $300. Received collections in full, less discounts from customers billed on May 2. Paid Hilton Wholesale Supply in full less discount. Purchased supplies for cash $810. Purchased merchandise for cash $2,430. Received $260 refund for return of poor-quality merchandise from supplier on cash purchase Purchased merchandise from Northern Distributors for $2,300, terms 2/10,n/30. Paid freight on May 17 purchase $270. Sold merchandise for cash $5,570. The cost of the merchandise sold was $4.260. Purchased merchandise from Toolware Inc. for $780, terms 3/10,n/30. Pald Northern Distributors in full, less discount Made refunds to cash customers for returned merchandise $140. The returned merchandise was returned to inventory and had cost $90 Sold merchandise on account for $1,390, terms n/30. The cost of the merchandise sold was $920. 29 31 Pina Colada Hardware uses a perpetual inventory system Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to the nearest whole dollar, - 5.7750 Date Account Titles and Explanation Debit Credit May 1 N (Sale of merchandise on account) 2 (Cost of goods sold recorded) 5 9 I 10 11 12 15 17 19 24 19 24 (Sale of merchandise) 24 (Cost of goods sold recorded) 25 27 29 (Return of merchandise) 29 (Return of merchandise, assuming goods are resaleable and returned to inventory) 31 (Sale of merchandise) 31 (Cost of goods sold recorded)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Financial Systems Stability And Risk

Authors: Jon Danielsson

1st Edition

0273774662, 9780273774662

More Books

Students also viewed these Accounting questions

Question

List six bookkeeping errors that a trial balance does not detect.

Answered: 1 week ago

Question

What is a multivariate data set?

Answered: 1 week ago