The Nisson Distributing Company completed the following merchandising transactions in the month of April. At the beginning of April, the ledger of Nisson showed Cash of \(\$ 9,000\) and Common Stock of \(\$ 9,000\).

Apr. 2 Purchased merchandise on account from Kentucky Supply Co. \(\$ 4,900\), terms 2/10, \(\mathrm{n} / 30\).
4 Sold merchandise on account \(\$ 5,000\), FOB destination, terms \(2 / 10, n / 30\). The cost of the merchandise sold was \(\$ 4,000\).
5 Paid \(\$ 200\) freight on April 4 sale.
6 Received credit from Kentucky Supply Co. for merchandise returned \(\$ 300\).
11 Paid Kentucky Supply Co. in full, less discount.
13 Received collections in full, less discounts, from customers billed on April 4.
14 Purchased merchandise for cash \(\$ 4,400\).
16 Received refund from supplier on cash purchase of April \(14, \$ 500\).
18 Purchased merchandise from Pigeon Distributors \(\$ 4,200\), FOB shipping point, terms \(2 / 10, \mathrm{n} / 30\).
20 Paid freight on April 18 purchase \(\$ 100\).
23 Sold merchandise for cash \(\$ 6,400\). The merchandise sold had a cost of \(\$ 5,120\).
26 Purchased merchandise for cash \(\$ 2,300\).
27 Paid Pigeon Distributors in full, less discount.
29 Made refunds to cash customers for defective merchandise \(\$ 90\). The returned merchandise had a cost of \(\$ 70\).
30 Sold merchandise on account \(\$ 3,700\), terms \(\mathrm{n} / 30\). The cost of the merchandise sold was \(\$ 3,000\).
Nisson Company's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, No. 501 Cost of Goods Sold, and No. 644 Freight-out.
\section*{Instructions}

(a) Journalize the transactions using a perpetual inventory system.

(b) Enter the beginning cash balances, and post the transactions (Use J1 for the journal reference.)

(c) Prepare the income statement through gross profit for the month of April, 1998