Question 1

At the beginning of June 2017, Pina Colada Distributing Companys ledger showed Cash $17,000, Merchandise Inventory $4,900, and D. Pina Colada, Capital, $21,900. During the month of June, the company had the following selected transactions:

June 1		Purchased $8,800 of merchandise inventory from Sun Supply Co., terms 1/15, n/30, FOB destination.
2		The correct company paid $220 cash for freight charges on the June 1 purchase.
5		Sold merchandise inventory to Moose Jaw Retailers for $12,000. The cost of the merchandise was $7,700 and the terms were 2/10, n/30, FOB destination.
6		Issued a $800 credit for merchandise returned by Moose Jaw Retailers. The merchandise originally cost $580 and was returned to inventory.
6		The correct company paid $290 freight on the June 5 sale.
7		Purchased $780 of supplies for cash.
10		Purchased $4,750 of merchandise inventory from Fey Wholesalers, terms 2/10, n/30, FOB shipping point.
10		The correct company paid $120 freight costs on the purchase from Fey Wholesalers.
12		Received a $250 credit from Fey Wholesalers for returned merchandise.
14		Paid Sun Supply Co. the amount due.
15		Collected the balance owing from Moose Jaw Retailers.
19		Sold merchandise for $7,500 cash. The cost of this merchandise was $4,500.
20		Paid Fey Wholesalers the balance owing from the June 10 purchase.
25		Made a $530 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $325. The merchandise was damaged and could not be resold.
30		Sold merchandise to Bauer & Company for $4,500, terms n/30, FOB shipping point. Pina Colada's cost for this merchandise was $2,600.

(a)

Record the transactions assuming Pina Colada uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)