P5.3 (LO 2, 3, 4), AP At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $2,500, Inventory $3,500, and Common Stock $6,000. The following transactions were completed during April 2025. Apr. 5 7 9 10 12 14 17 20 21 27 30 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,500, terms 3/10, n/60. Paid freight on Arnie purchase $80. Received credit from Arnie Co. for merchandise returned $200. Sold merchandise on account to members $1,340, terms n/30. The merchandise sold had a cost of $820. Purchased golf shoes, sweaters, and other accessories on account from Woods Sports- wear $830, terms 1/10, n/30. Paid Arnie Co. in full. Received credit from Woods Sportswear for merchandise returned $30. Made sales on account to members $810, terms n/30. The cost of the merchandise sold was $550. Paid Woods Sportswear in full. Granted an allowance to members for clothing that did not fit properly $80. Received payments on account from members $1,220. The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, and Cost of Goods Sold.

P5.3 (LO 2, 3, 4), AP At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $2,500, Inventory $3,500, and Common Stock $6,000. The following transactions were completed during April 2025. Apr. 5 7 9 10 12 14 17 20 21 27 30 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,500, terms 3/10, n/60. Paid freight on Arnie purchase $80. Received credit from Arnie Co. for merchandise returned $200. Sold merchandise on account to members $1,340, terms n/30. The merchandise sold had a cost of $820. Purchased golf shoes, sweaters, and other accessories on account from Woods Sports- wear $830, terms 1/10, n/30. Paid Arnie Co. in full. Received credit from Woods Sportswear for merchandise returned $30. Made sales on account to members $810, terms n/30. The cost of the merchandise sold was $550. Paid Woods Sportswear in full. Granted an allowance to members for clothing that did not fit properly $80. Received payments on account from members $1,220. The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, and Cost of Goods Sold.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...

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