Question #$1$

The following information relates to Hay and Feed Supply of Diablo, California.

April $2$: Purchased inventory from Hay Fork Farms for $$5,400,$ terms $6/15,$ n$/30.$

April $3$: Paid freight costs of $$125$ on merchandise purchased from Hay Fork Farms.

April $11$: Purchased equipment for $$8,000$ from Kubota Corporation by signing a $5-$year note.

April $12$: Returned a portion of inventory purchased from Hay Fork Farms which cost $$1,200.$

April $17$: Paid the remaining amount due to Hay Fork Farms in full.

April $21$: Sold merchandise costing $$1,830$ to Flying B Ranch for $$3,200$ on open account

with credit terms of $\frac{5}{10},$ net $30.$

April $28$: Flying B Ranch returned $$750$ of their April $21$ purchase.

Note: the cost of the

merchandise returned was $$360.$

April $30$: Received payment from Flying B Ranch on their remaining balance due.

Instructions

$($a$)$ Prepare the journal entries to record the transactions listed above on the books of Hay and Feed Supply. Note: the company uses a perpetual inventory system.

$($b$)1.$ Assume that Hay and Feed Supply paid the balance due to Hay Fork Farms on May $2$ instead of April $17.$ Prepare the journal entry to record this payment.

$2.$ Assume Flying B Ranch paid their balance due on May $10$th instead of April $30$th$.$

Prepare the journal entry to record the payment received.

Be sure to prepare all journal entries in proper form and with correct account names.