Accounts Receivable and Merchandise Inventory

Topics: Accounts receivable, Accounts payable, Accounting software Pages: 7 (486 words) Published: January 10, 2013
P5-4A J. Hafner, a former professional tennis star, operates Hafner's Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Hafner's Tennis Shop showed Cash $2,500, Merchandise Inventory $1,700, and J. Hafner, Capital $4,200. The following transactions were completed during April.

(a)
General JournalJ1
|Date | |Account Titles and Explanation | |Ref. | |Debit | |Credit | |Apr.  4 | |Merchandise Inventory | |120 | |  840 | | | | | |Accounts Payable | |201 | | | |  840 | | | | | | | | | | | |  6 | |Merchandise Inventory | |120 | |   40 | | | | | |Cash | |101 | | | |   40 | | | | | | | | | | | |  8 | |Accounts Receivable | |112 | |1,150 | | | | | |Sales | |401 | | | |1,150 | | | | | | | | | | | | | |Cost of Goods Sold | |505 | |  790 | | | | | |Merchandise Inventory | |120 | | | |  790 | | | | | | | | | | | | 10 | |Accounts Payable | |201 | |   40 | | | | | |Merchandise Inventory | |120 | | | |   40 | | | | | | | | | | | | 11 | |Merchandise Inventory | |120 | |  420 | | | | | |Cash | |101 | | | |  420 | | | | | | | | | | | | 13 | |Accounts Payable ($840 – $40) | |201 | | 800 | | | | | |Merchandise Inventory | |120 | | | |   16 | | | |  ($800 X 2%) | | | | | | | | | |Cash | |101 | | | |  784 | | | | | | | | | | | | 14 | |Merchandise Inventory...
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