Renner Hardware Store completed the following merchandising transactions in the
ID: 2558534 • Letter: R
Question
Renner Hardware Store completed the following merchandising transactions in the month of $4,630 and Owner's Capital of $4,630 May. At the beginning of May, the ledger of Renner showed Cash of May 1 Purchased merchandise on account from Braun's Wholesale Supply $4,300, terms 1/10, nv/30. 2 Sold merchandise on account $2,000,t erms 1/10, n/30. The cost of the merchandise sold was $1,350. le Supply for merchandise returned $400. ions in full, less discounts, from customers biled on sales of $2,000 on May 2. 10 Paid Braun's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $320. 12 Purchased merchandise for cash $1,300. 15 Received refund for poor quality merchandise from supplier on cash purchase $120. 17 Purchased merchandise from Valley Distributors $1,100, FOB shipping point, terms 2/10, n/30. 19 Paid freight on May 17 purchase $180, 24 Sold merchandise for cash $3,020. The merchandise sold had a cost of $2,090. 25 Purchased merchandise from Lumley, Inc. $710, FOB destination, terms 2/1o, n/30. 27 Paid Vailey Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $20. 31 Sold merchandise on account $1,200, terms n/30. The cost of the merchandise sold was $590. Renner Hardware's chart of accounts includes the foltowing: 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.Explanation / Answer
Renner Hardware Store General Journal For the month of May Date Account Title Debit Credit May.1 Inventory 4300 Accounts Payable 4300 (Purchase of merchandise on account) May.2 Accounts Receivable 2000 Sales 2000 (Sale of merchandise on account) Cost of goods sold 1350 Inventory 1350 (Cost of goods sold) May.5 Purchase returns and allowances 400 Accounts Payable 400 (Credit received for return of goods) May.9 Cash 1980 Sales Discounts 20 Accounts Receivable 2000 (Collection of amount due on sale dt. 5/2) May.10 Accounts Payable 3900 Cash 3861 Inventory 39 (Payment in full for purchase dt.5/1) May.11 Supplies 320 Cash 320 (Purchase of supplies for cash) May.12 Inventory 1300 Cash 1300 (Purchase of merchandise for cash) May.15 Cash 120 Purchase returns and allowances 120 (Refund received for poor quality goods) May.17 Inventory 1100 Accounts Payable 1100 (Purchase of merchandise on account) May.19 Inventory 180 Cash 180 (Freight paid on supplies dt.5/17) May.24 Cash 3020 Sales 3020 (Sale of merchandise for cash) Cost of goods sold 2090 Inventory 2090 (Cost of goods sold for cash) May.25 Inventory 710 Accounts Payable 710 (Purchase of merchandise on account) May.27 Accounts Payable 1100 Inventory 22 Cash 1078 (Paid for purchase dated 5/17) May.29 Sales 70 Accounts Receivable 70 (Return of goods from cash customers) Inventory 20 Cost of goods sold 20 (Cost of the goods returned from customers) May.31 Accounts Receivable 1200 Sales 1200 (Sales of merchandise on account) Cost of goods sold 590 Inventory 590 (Cost of the goods sold on account)