Question

Sandhill Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Sandhills' ledger showed Cash of $7.900 and Common Stock of $7.900. May 1 Purchased merchandise on account from Black Wholesale Supply for $7.900 terms 1/10, 1/30 2 Sold merchandise on account for $4,300, terms 2/10, 1/30. The cost of the merchandise sold was $3.200. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 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 $900. 12 Purchased merchandise for cash $3,000. 15 Received $230 refund for return of poor quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2.400, terms 2/10,n/30. 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5.500. The cost of the merchandise sold was $4.100 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10,n/30. 27 Paid Wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $108. The returned merchandise had cost $98. 31 Sold merchandise on account for $1.280. terms n/30. The cost of the merchandise sold was 5864

Answer 1

Date	Account Titles	Debit	Credit
May-01	Inventory	$              7,900
	Accounts Payable		$                7,900
May-02	Accounts Receivable	$              4,300
	Sales Revenue		$                4,300
	Cost of Goods sold	$              3,200
	Inventory		$                3,200
May-05	Accounts Payable	$                  200
	Inventory		$                   200
May-09	Cash	$              4,214			=4300-86
	Sales Discount	$                    86			=4300*2%
	Accounts Receivable		$                4,300
May-10	Accounts Payable	$              7,700			=7900-200
	Cash		$                7,623		=7700-77
	Inventory		$                     77		=7700*1%
May-11	Supplies	$                  900
	Cash		$                   900
May-12	Inventory	$              3,000
	Cash		$                3,000
May-15	Cash	$                  230
	Inventory		$                   230
May-17	Inventory	$              2,400
	Accounts Payable		$                2,400
May-19	Inventory	$                  250
	Cash		$                   250
May-24	Accounts Receivable	$              5,500
	Sales Revenue		$                5,500
	Cost of Goods sold	$              4,100
	Inventory		$                4,100
May-25	Inventory	$                  800
	Accounts Payable		$                   800
May-27	Accounts Payable	$              2,400
	Cash		$                2,352		=2400-48
	Inventory		$                     48		=2400*2%
May-29	Sales returns and allowances	$                  108
	Cash		$                   108
	Inventory	$                    98
	Cost of Goods Sold		$                     98
May-31	Accounts Receivable	$              1,280
	Sales Revenue		$                1,280
	Cost of Goods sold	$                  864
	Inventory		$                   864