Question

Problem 5-02A - (Part Level Submission) (Video) Sheridan Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the edge of Sheridan showed Cash of 55,500 and Owner's Capital of 55, May 1 Purchased merchandise on account from Braun's Wholesale Supply $4,200, terms 2/10, 1/30 2 Sold merchandise on account $1,900, terms 1/10, 130. The cost of the merchandise sold was $1,600 5 Received credit from Braun's Wholesale Supply for merchandise returned $350. 9 Received collections in l, les discounts, from customers bilied on sales of $1,900 on May 2. 10 Paid Braun's Wholesale Supply in less discount 11 Purchased supplies for cash $400. 12 Purchased merchandise for cash $1,200 15 Received refund for poor quality merchandise from supplier on cash purchase $200. 17 Purchased merchandise from Valley Distributors $1,100, FOB shipping point terms 2/10, 1/30 19 Paid freight on May 17 purchase $100 24 Sold merchandise for cash 3.500. The merchandise sold had a cost of $2,000. 25 Purchased merchandise n t from Lumiey, Inc. $700, FOB destination terms 2/10, 130 27 Paid Valley Dist in les discount 29 Made refunds to cash customers for defective merchandises. The returned merchandise had a far value of 30 31 Sold merchandise on a 1.500 m . The cost of the merchandise sold was $500 201 A Payable 30 Owner's Sheridan Hardware that of account includes the following No. 101 Cash, No. 112 Accounts Receivable No. 120 Inventory No 126 Supps N Capital No401 Sales RevenueNo 612 Sales Reums and Allowances, No. 414 Sales Discounts and SOS Cost of Goods Sold 2 your answer to partially correct. Try again a nte. Don e card Journal ther Journal entre a peuventry wystem (Credit accountries are automatically indented when am presented the prom ) the

Answer 1

Date	Account Titles and Explanation	Debit	Credit
May-01	Inventory	4200
	Accounts payable-Braun's Wholesale		4200
	(To record merchandise purchased on account)
May-02	Accounts receivable	1900
	Sales revenue		1900
	(To record sales on account)
May-02	Cost of goods sold	1600
	Inventory		1600
	(To record the cost of goods sold)
May-05	Accounts payable-Braun's Wholesale	350
	Inventory		350
	(To record inventory returned)
May-09	Cash ($1900 - $19)	1881
	Sales discounts ($1900 x 1%)	19
	Accounts receivable		1900
	(To record collections on account)
May-10	Accounts payable-Braun's Wholesale ($4200 - $350)	3850
	Inventory ($3850 x 2%)		77
	Cash ($3850 - $77)		3773
	(To record payment on account)
May-11	Supplies	400
	Cash		400
	(To record supplies purchased for cash)
May-12	Inventory	1200
	Cash		1200
	(To record merchandise purchased for cash)
May-15	Cash	200
	Inventory		200
	(To record refund on cash purchase)
May-17	Inventory	1100
	Accounts payable-Valley Distributors		1100
	(To record merchandise purchased on account)
May-19	Inventory	100
	Cash		100
	(To record freight paid on merchandise purchased)
May-24	Cash	3500
	Sales revenue		3500
	(To record cash sales)
May-24	Cost of goods sold	2000
	Inventory		2000
	(To record the cost of goods sold)
May-25	Inventory	700
	Accounts payable-Lumley Inc.		700
	(To record merchandise purchased on account)
May-27	Accounts payable-Valley Distributors	1100
	Inventory ($1100 x 2%)		22
	Cash ($1100 - $22)		1078
	(To record payment on account)
May-29	Sales returns and allowances	70
	Cash		70
	(To record refunds to cash customers)
May-29	Inventory	30
	Cost of goods sold		30
	(To record cost of defective merchandise returned)
May-31	Accounts receivable	1500
	Sales revenue		1500
	(To record sales on account)
May-31	Cost of goods sold	500
	Inventory		500
	(To record the cost of goods sold)