UPDATED NEED ASAP Renner Hardware Store completed the follo

UPDATED , NEED ASAP

Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $4,610 and Owner’s Capital of $4,610.

Renner Hardware’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner’s Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

May 1		Purchased merchandise on account from Braun\'s Wholesale Supply $4,200, terms 2/10, n/30.
2		Sold merchandise on account $2,100, terms 2/10, n/30. The cost of the merchandise sold was $1,250.
5		Received credit from Braun\'s Wholesale Supply for merchandise returned $400.
9		Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2.
10		Paid Braun\'s Wholesale Supply in full, less discount.
11		Purchased supplies for cash $380.
12		Purchased merchandise for cash $1,500.
15		Received refund for poor quality merchandise from supplier on cash purchase $150.
17		Purchased merchandise from Valley Distributors $1,300, FOB shipping point, terms 2/10, n/30.
19		Paid freight on May 17 purchase $160.
24		Sold merchandise for cash $3,420. The merchandise sold had a cost of $2,210.
25		Purchased merchandise from Lumley, Inc. $580, FOB destination, terms 2/10, n/30.
27		Paid Valley Distributors in full, less discount.
29		Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $40.
31		Sold merchandise on account $1,480, terms n/30. The cost of the merchandise sold was $580.

Solution

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-May Inventory    4,200.00    Accounts Payable    4,200.00 (To record the credit purchase) 2-May Accounts Receivable    2,100.00    Sales Revenue)    2,100.00 (To record the credit sales) Cost of Goods Sold    1,250.00    Inventory    1,250.00 (To record cost of goods sold) 5-May Accounts Payable       400.00    Inventory       400.00 (To record the purchase return) 9-May Cash ($2,100 x 98%)    2,058.00 Sales Discounts ($2,100 X 2%)          42.00    Accounts Receivable    2,100.00 (To record the cash received) 10-May Accounts Payable    3,800.00    Cash ($3,800 X 98%)    3,724.00    Inventory          76.00 (To record the amount paid) 11-May Supplies       380.00    Cash       380.00 (tor record the supplies purchased) 12-May Inventory    1,500.00    Cash    1,500.00 (To record the cash purchase) 15-May Cash       150.00    Inventory       150.00 (To record the cash recd. For poor quality) 17-May Inventory    1,300.00    Accounts Payable    1,300.00 (To record the credit purchase) 19-May Inventory       160.00    Cash       160.00 (To record the freight paid) 24-May Cash    3,420.00    Sales Revenue)    3,420.00 (To record the credit sales) Cost of Goods Sold    2,210.00    Inventory    2,210.00 (To record cost of goods sold) 25-May Inventory       580.00    Accounts Payable       580.00 (To record the credit purchase) 27-Mar Accounts Payable    1,300.00    Cash ($1,300 X 98%)    1,274.00    Inventory ($1,300 X 2%)          26.00 (To record the amount paid) 29-Mar Sales Return & Allowance          70.00    Cash          70.00 (To record the sales returns) Inventory          40.00    Cost of Goods Sold          40.00 (To record the cost of goods sold of returned goods) 31-May Accounts Receivable    1,480.00    Sales Revenue)    1,480.00 (To record the credit sales) Cost of Goods Sold       580.00    Inventory       580.00 (To record cost of goods sold)