Problem 6-66A Recording Sale and Purchase Transactions Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetual inventory system and engaged in the following transactions during April 2019, its first month of operations: a. On April 2.Alpharack purchased, on credit, 360 Wilbur T-100 tennis rackets with credit terms of 2/10,30 The rackets were purchased at a cost of $30 each.Alpharack paid Barker Trucking $195 to transport the tennis rackets from the manufacturer to Alpharack's warehouse, shipping terms were F.O.B. Shipping point, and the Items were shipped on April 2 . On April 3, Alpharack purchased, for cash, 115 packs of tennis balls for $10 per pack On April 4 Alpharack purchased tennis clothing, on credit, from Designer Tennis Wear. The cost of the clothing was $8,250 Credit terms were 2/10, 1/25 d. On April 10. Alpharack paid for the purchase of the tennis rackets in Transaction a. e. On April 15. Alpharack determined that $325 of the tennis clothing was defective. Alpharack returned the defective merchandise to Designer Tennis Wear E on April 20, Alpharack sold 118 tennis rackets at $90 each, 92 packs of tennis balls at $12 per pack, and $5,380 of tennis clothing. All sales were for cash. The cost of the merchandise sold was $7,580. On April 23, customers returned $860 of the merchandise purchased on April 20. The cost of the merchandise returned was $450 On Apr 25, Alpharack solid another S5 tennis rackets, on credit for $90 each and 15 packs of tennis balls at $12 per pack, for cash. The cost of the merchandise solid was $1,800. On April 29. Alpharack paid Designer Tennis Wear for the clothing purchased on April 4 minus the return on April 15 1. On Rori 30, Alpharack purchased 20 tennis bags, on credit, from Bag Designs for $320. The bags were shipped F.O.B. destination and arrived at Aipharack on May 3. Required: 1. Prepare the journal entries to record the sale and purchase transactions for Alpharack during April 2019. of no entry is required, select "No entry required and leave the amount boxes blank. For a compound transaction, an amount box does not require an entry leave it blank 2. April 2 Inventory 10.800 10.800 (Purchased inventory on account) April 2 Page 1 195 Cash 195 (Paid freight costs) b. April Invent 1,150 1.150 Purchased inventory for cash) cApril Inventory 8.250 8.250 (Purchased inventory on account) d. April 10 10,800 216 O 10,584 (Pris accounts payable within discount period) 2. April 15 Accounts Payable 325 Page 2 325 (Recorded return of um of merchandise) April 20 Cash 17,340 17,340 (Made cash sales) April 20 cost of Goods Sold 7.580 Inventory 7.520 (Recorded cost of merchandise sold) 9. Apr 23 Sales Returns and Alonances 860 850 (Recorded return of merchandise) April 23 Inventory 450 Cost of Goods Sold 450 (Recorded cost of goods sold) h. April 25 Nentry 4,950 ht: Pageants 180 0 5.130 Sales Revenue (Made sales, both cash and on account) April 25 Costa Goods 1.800 1.800 (Recorded cost of merchandise sold) 1. April 29 No entry required 7,925 7.925 (Paid off accounts payable) Art 30 Inventory 320 320 Ne entry (Purchased inventory on account) 2. Assuming operating expenses of $5,500 and income taxes of $1,180, prepare Alpharack's income statement for April 2019. Alpharack Company Income Statement For the Period Ended April 30, 2019 ESupMLESHENETS THueezymavESHupnyuS31Sustatius" aepenugunujuriesumulaepeniueastartues 'nanu Pages Less: Sales returns and allowances 5 Niet income Less: Cost of goods sold 3 more Check My Wor handiago.com_acy Service__in_1 Pagesos