Problem 5-04A a-c (Part Level Submission)

Marigold Hagen, a former disc golf star, operates Marigolds Discorama. At the beginning of the current season on April 1, the ledger of Marigolds Discorama showed Cash $1,800, Inventory $2,400, and Owners Capital $4,200. The following transactions were completed during April.

Apr. 5		Purchased golf discs, bags, and other inventory on account from Mumford Co. $1,200, FOB shipping point, terms 2/10, n/60.
7		Paid freight on the Mumford purchases $60.
9		Received credit from Mumford Co. for merchandise returned $100.
10		Sold merchandise on account for $880, terms n/30. The merchandise sold had a cost of $528.
12		Purchased disc golf shirts and other accessories on account from Saucer Sportswear $675, terms 1/10, n/30.
14		Paid Mumford Co. in full, less discount.
17		Received credit from Saucer Sportswear for merchandise returned $75.
20		Made sales on account for $680, terms n/30. The cost of the merchandise sold was $400.
21		Paid Saucer Sportswear in full, less discount.
27		Granted an allowance to customers for clothing that was flawed $20.
30		Received payments on account from customers $840.

The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 301 Owners Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold.

(a) Your answer is correct. Journalize the April transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Apr. 5 Inventory 1,200 Accounts Payable 1,200 Apr. 7 Inventory 60 Cash 60 Apr. 9 Accounts Payable 100 Inventory 100 Apr. 10 Accounts Receivable 880 Sales Revenue 880 (To record credit sale.) Apr. 10 Cost of Goods Sold 528 Inventory 528 (To record cost of merchandise sold.) > Apr. 12 Inventory 675 Accounts Payable 675 Apr. 14 Accounts Payable 1,1001 Inventory 22 > Cash 1,078 Apr. 17 Accounts Payable 75 Inventory 75 Apr. 20 Accounts Receivable 680 Sales Revenue 680 (To record credit sale.) Apr. 20 Cost of Goods Sold 400 Inventory 400 (To record cost of merchandise sold.) Apr. 21 Accounts Payable 600 Inventory 6 Cash 594 Apr. 27 Sales Returns and Allowances 20 Accounts Receivable 20 Apr. 30 Cash 840 Accounts Receivable 840 (b) Enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Explanation Ref. No. 101 Balance Date Debit Credit Balance 31 J1 J1 J1 Accounts Receivable Explanation Ref. Debit No. 112 Balance Date Credit J1 J1 J1 J1 Inventory Explanation Ref. Debit No. 120 Balance Date Credit Balance J1 J1 Owner's Capital Explanation Ref. Debit No. 301 Date Credit Balance Balance No. 401 Sales Revenue Explanation Ref. Debit Date Credit Balance J1 J1 Sales Returns and Allowances Explanation Ref. Debit J1 No. 412 Balance Date Credit Cost of Goods Sold Explanation Ref. Debit No. 505 Balance Date Credit J1 > J1