Winters Hardware Store completed the following merchandising transactions in the month of May At the beginning of May, Winters ledger showed Cash of $8,800 and Common Stock of $8,800 May 1 Purchased merchandise on account from Black Wholesale Supply for $7,950, terms 1 10, n 30 2 Sold merchandise on account for $4,600, terms 2 10, n 30 The cost of the merchandise sold was $3,450 5 Received credit from Black Wholesale Supply for merchandise returned $550 9 Received collections in full, less discounts, from customers billed on May 2 10 Paid Black Wholesale Supply in full, less discount 11 Purchased supplies for cash $990 12 Purchased merchandise for cash $3,410 15 Received $253 refund for return of poor quality merchandise from supplier on cash purchase 17 Purchased merchandise from Wilhelm Distributors for $2,850, terms 2 10, n 30 19 Paid freight on May 17 purchase $275 24 Sold merchandise for cash $6,050 The cost of the merchandise sold was $4,510 25 Purchased merchandise from Clasps Inc for $880, terms 3 10, n 30 27 Paid Wilhelm Distributors in full, less discount 29 Made refunds to cash customers for returned merchandise $140 The returned merchandise had cost $93 31 Sold merchandise on account for $1,408, terms n 30 The cost of the merchandise sold was $913 Post the transactions to T accounts Be sure to enter the beginning cash and common stock balances (Post entries in the order of journal entries posted in part (a) Round answers to 0 decimal places, e g 5,275 ) Journalize the transactions using a perpetual inventory system (If no entry is required, select No Entry for the account titles and enter for the amounts 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 (To record credit sale) (To record cost of merchandise sold) May 9 (To record sales) (To record cost of merchandise sold) V Common Stock Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold V

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters ledger showed Cash of $8,800 and

Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters ledger showed Cash of $8,800 and Common Stock of $8,800.

May 1		Purchased merchandise on account from Black Wholesale Supply for $7,950, terms 1/10, n/30.
2		Sold merchandise on account for $4,600, terms 2/10, n/30. The cost of the merchandise sold was $3,450.
5		Received credit from Black Wholesale Supply for merchandise returned $550.
9		Received collections in full, less discounts, from customers billed on May 2.
10		Paid Black Wholesale Supply in full, less discount.
11		Purchased supplies for cash $990.
12		Purchased merchandise for cash $3,410.
15		Received $253 refund for return of poor-quality merchandise from supplier on cash purchase.
17		Purchased merchandise from Wilhelm Distributors for $2,850, terms 2/10, n/30.
19		Paid freight on May 17 purchase $275.
24		Sold merchandise for cash $6,050. The cost of the merchandise sold was $4,510.
25		Purchased merchandise from Clasps Inc. for $880, terms 3/10, n/30.
27		Paid Wilhelm Distributors in full, less discount.
29		Made refunds to cash customers for returned merchandise $140. The returned merchandise had cost $93.
31		Sold merchandise on account for $1,408, terms n/30. The cost of the merchandise sold was $913.

image text in transcribed

Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances. (Post entries in the order of journal entries posted in part (a). Round answers to 0 decimal places, e.g. 5,275.)

image text in transcribed

Journalize the transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. 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 (To record credit sale) (To record cost of merchandise sold) May 9 (To record sales) (To record cost of merchandise sold) > > V Common Stock Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold V