Question

T the beginning of the current season on April, the ledger of Gage Pro Shop showed Cash $3,000. Inventory $4,000, and Owner's Capital $7,000. These transactions occurred during April 2019.

April 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10, n/60.
7 Paid freight on Tiger Co. purchases $50.
9 Received credit from Tiger Co. for merchandise returned $100.
10 Sold merchandise on account to customers $600, terms n/30.
12 Purchased golf shoes, sweaters, and other accessories on account from Classic sportswear $450, terms 1/10, n/30.
14 Paid Tiger Co. in full.
17 Received credit from Classic Sportswear for merchandise returned $50.
20 Made sales on account to customers $600, terms n/30.
21 Paid Classic Sportswear in full.
27 Granted credit to customers for clothing that had flaws $35.
31 Received payments on account from customers $600.
The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Owner's Capital, Sales Revenue, Sales Returns and Allowances, Purchase Returns and Allowances, Purchase Discounts, and Freight In.
Journalize the April transactions using a perpetual inventory system.

Answer 1

To journalize the April transactions using a perpetual inventory system, you would need to record the relevant financial information for each transaction. This involves debiting and crediting the appropriate accounts in the ledger.

Step-by-step explanation:

To journalize the April transactions using a perpetual inventory system, we need to record the relevant financial information for each transaction. Here is the journal entry for each transaction:

1. April 5: Debit Inventory $1,200 and Credit Accounts Payable $1,200
2. April 7: Debit Freight In $50 and Credit Cash $50
3. April 9: Debit Accounts Payable $100 and Credit Inventory $100
4. April 10: Debit Accounts Receivable $600 and Credit Sales Revenue $600
5. April 12: Debit Inventory $450 and Credit Accounts Payable $450
6. April 14: Debit Accounts Payable $1,200, Credit Accounts Payable $120, and Credit Cash $1,080
7. April 17: Debit Accounts Payable $50 and Credit Accounts Payable $50
8. April 20: Debit Accounts Receivable $600 and Credit Sales Revenue $600
9. April 21: Debit Accounts Payable $450, Credit Accounts Payable $45, and Credit Cash $405
10. April 27: Debit Accounts Receivable $35 and Credit Sales Returns and Allowances $35
11. April 31: Debit Cash $600 and Credit Accounts Receivable $600

This journal entry records the impact of each transaction on the appropriate accounts in the ledger.