Merchandising transactions in the month


Problem:

Midwest Distributing Company completed these merchandising transactions in the month of April. At the beginning of April, the ledger of Midwest showed Cash of $9,000 and Common Stock of $9,000.

Apr. 2 Purchased merchandise on account from Kane Supply Co. $6,300, terms 2/10, n/30

Apr. 4 Sold merchandise on account for $5,000, terms 2/10, n/30. The cost of the merchandise sold was $3,700.

Apr. 5 Paid $200 freight on April 4 sale.

Apr 6 Received credit from Kane Supply Co. for merchandise returned $300

Apr. 11 Paid Kane Supply Co. in full, less discount

Apr. 13 Received collections in full, less discounts, from customers billed on April 4

Apr. 14 Purchased merchandise for cash $4,700

Apr. 16 Received refund from supplier for returned merchandise on cash purchase of April 14, $500

Apr. 18 Purchased merchandise from Great Plains Distributors $4,500, terms 2/10, n/30

Apr. 20 Paid freight on April 18t purchase $100

Apr. 23 Sold merchandise for cash $8,300. The cost of the merchandise sold was $5,820

Apr. 26 Purchased merchandise for cash $2,300

Apr. 27 Paid Great Plains Distributors in full, less discount

Apr. 29 Made refunds to cash customers for returned merchandise $180. The returned merchandise had a cost of $120.

Apr. 30 Sold merchandise on account $3,980, terms n/30. The cost of the merchandise sold was $2,500.

Journalize the following transactions and post to T accounts.

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Accounting Basics: Merchandising transactions in the month
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