Answer:
May 1
Dr Inventory $4,200
Cr Accounts Payable $4,200
May 2
Dr Accounts Receivable $2,100
Cr Sales Revenue $2,100
Dr Cost of Goods Sold $1,300
Cr Inventory $1,300
May 5
Dr Accounts Payable $350
Cr Inventory $350
May 9
Dr Cash $2,079
Cr Sales Discounts $21
Accounts Receivable $2,100
May 10
Dr Accounts Payable $3,850
Cr Inventory $77
Cr Cash $3,773
May 11
Dr Supplies $350
Cr Cash $350
May 12
Dr Inventory $1,400
Cr Cash $1,400
May 15
Dr Cash $150
Cr Inventory $150
May 17
Dr Inventory $1,300
Cr Accounts Payable $1,300
May 19
Dr Inventory $140
Cr Cash $140
May 24
Dr Cash $3,500
Cr Sales Revenue $3,500
Dr Cost of goods sold $2,100
Cr Inventory $2,100
May 25
Dr Inventory $620
Cr Accounts Payable $620
May 27
Dr Accounts Payable $1,300
Cr Inventory $26
Cr Cash $1,274
May 29
Dr Sales returns and Allowances $70
Cr Cash $70
Dr Inventory $30
Cr Cost of goods sold $30
May 31
Dr Accounts Receivable $1,000
Cr Sales Revenue $1,000
Dr Cost of goods sold $560
Cr Inventory $560
Explanation:
Preparation of the journal entries using a perpetual inventory system
May 1
Dr Inventory $4,200
Cr Accounts Payable $4,200
(To record the purchases on account)
May 2
Dr Accounts Receivable $2,100
Cr Sales Revenue $2,100
(To record the credit sales)
Dr Cost of Goods Sold $1,300
Cr Inventory $1,300
(To record the cost of goods sold)
May 5
Dr Accounts Payable $350
Cr Inventory $350
(To record the purchase returns)
May 9
Dr Cash ($2,100-21) $2,079
Cr Sales Discounts ($2,100*1%) $21
Accounts Receivable $2,100
(To record the cash collected on account)
May 10
Dr Accounts Payable ($4,200-$350) $3,850
Cr Inventory ($3,850*2%) $77
Cr Cash ($3,850-$77) $3,773
(To record the amount paid to suppliers)
May 11
Dr Supplies $350
Cr Cash $350
(To record the supplies purchased)
May 12
Dr Inventory $1,400
Cr Cash $1,400
(To record the cash purchases)
May 15
Dr Cash $150
Cr Inventory $150
(To record the cash refund for poor quality of goods)
May 17
Dr Inventory $1,300
Cr Accounts Payable $1,300
(To record the purchases on account)
May 19
Dr Inventory $140
Cr Cash $140
(To record the freight paid)
May 24
Dr Cash $3,500
Cr Sales Revenue $3,500
(To record the cash sales)
Dr Cost of goods sold $2,100
Cr Inventory $2,100
(To record the cost of goods sold)
May 25
Dr Inventory $620
Cr Accounts Payable $620
(To record the credit purchases)
May 27
Dr Accounts Payable $1,300
Cr Inventory ($1,300*2%) $26
Cr Cash ($1,300-$26) $1,274
(To record the amount paid to supplier)
May 29
Dr Sales returns and Allowances $70
Cr Cash $70
(To record the sales return)
Dr Inventory $30
Cr Cost of goods sold $30
(To record the cost of goods returned)
May 31
Dr Accounts Receivable $1,000
Cr Sales Revenue $1,000
(To record the credit sales)
Dr Cost of goods sold $560
Cr Inventory $560
(To record the cost of goods sold)
