Answer:
Sandhill Pro Shop
Journal Entries:
Apr. 5: Debit Inventory $2,500
Credit Accounts Payable (Arnie Co.) $2,500
To record the purchase of goods on account, terms 2/10, n/60.
Apr. 7: Debit Freight-in $80
Credit Cash $80
To record the payment for freight on goods.
Apr. 9: Debit Accounts Payable (Arnie Co.) $700
Credit Inventory $700
To record the return of goods on account.
Apr. 10: Debit Accounts Receivable $1,340
Credit Sales Revenue $1,340
To record the sale of goods on account, terms n/30.
Debit Cost of goods sold $920
Credit Inventory $920
To record the cost of goods sold.
Apr. 12: Debit Inventory $1,050
Credit Accounts Payable (Woods Sportswear) $1,050
To record the purchase of goods on account, terms 2/10, n/30.
Apr. 14: Debit Accounts Payable (Arnie Co.) $1,800
Credit Cash $1,764
Credit Cash Discounts $36
To record the full settlement on account.
Apr. 17: Debit Accounts Payable (Woods Sportswear) $50
Credit Inventory $50
To record the return of goods on account.
Apr. 20: Debit Accounts Receivable (Members) $910
Credit Sales Revenue $910, terms n/30.
To record the sale of goods to members.
Debit Cost of goods sold $550
Credit Inventory $550
To record the cost of goods sold.
Apr. 21: Debit Accounts Payable (Woods Sportswear) $1,000
Credit Cash $980
Credit Cash Discounts $20
To record full settlement on account.
Apr. 27: Debit Sales Allowances $70
Credit Accounts Receivable (Members) $70
To record the sales allowances granted members for improperly fit clothing.
Apr. 30: Debit Cash $1,400
Credit Accounts Receivable (Members) $1,400
To record the receipt of cash from members on account.
Explanation:
a) Data and Analysis:
Apr. 5: Inventory $2,500 Accounts Payable (Arnie Co.) $2,500, terms 2/10, n/60.
Apr. 7: Freight-in $80 Cash $80
Apr. 9: Accounts Payable (Arnie Co.) $700 Inventory $700
Apr. 10: Accounts Receivable $1,340 Sales Revenue $1,340, terms n/30.
Cost of goods sold $920 Inventory $920
Apr. 12: Inventory $1,050 Accounts Payable (Woods Sportswear) $1,050, terms 2/10, n/30.
Apr. 14: Accounts Payable (Arnie Co.) $1,800 Cash $1,764 Cash Discounts $36
Apr. 17: Accounts Payable (Woods Sportswear) $50 Inventory $50
Apr. 20: Accounts Receivable $910 Sales Revenue $910, terms n/30.
Cost of goods sold $550 Inventory $550
Apr. 21: Accounts Payable (Woods Sportswear) $1,000 Cash $980 Cash Discounts $20
Apr. 27: Sales Allowances $70 Accounts Receivable $70
Apr. 30: Cash $1,400 Accounts Receivable (Members) $1,400
