Pina Colada Hardware Store Inc. completed the following merchandising transactions in the month of May 2025. At the beginning of May, Pina Colada's ledger showed Cash of $9,000 and Common Shares of $9,000. May 1 2 (a) 5 9 10 11 Purchased supplies for cash $960. 12 15 17 19 24 25 27 Purchased merchandise on account from Hilton Wholesale Supply for $9,000, terms 2/10, n/30. Sold merchandise on account for $4,800, terms n/30. The cost of the merchandise sold was $3,900. Received credit from Hilton Wholesale Supply for merchandise returned $290. Received collections in full from customers billed on May 2. Paid Hilton Wholesale Supply in full, less discount. 29 Purchased merchandise for cash $2,850. Received $330 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise from Northern Distributors for $2,650, terms 2/10, n/30. Paid freight on May 17 purchase $330. Sold merchandise for cash $5,600. The cost of the merchandise sold was $4,200. Purchased merchandise from Toolware Inc. for $860, terms 3/10, n/30. Paid Northern Distributors in full, less discount. Made refunds to cash customers for returned merchandise $126. The returned merchandise was returned to inventory and had cost $98. 31 Sold merchandise on account for $1,200, terms n/30. The cost of the merchandise sold was $900. Pina Colada Hardware uses a perpetual inventory system and expects a return rate of 3% on all sales. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manual
Pina Colada Hardware Store Inc. completed the following merchandising transactions in the month of May 2025. At the beginning of May, Pina Colada's ledger showed Cash of $9,000 and Common Shares of $9,000. May 1 2 (a) 5 9 10 11 Purchased supplies for cash $960. 12 15 17 19 24 25 27 Purchased merchandise on account from Hilton Wholesale Supply for $9,000, terms 2/10, n/30. Sold merchandise on account for $4,800, terms n/30. The cost of the merchandise sold was $3,900. Received credit from Hilton Wholesale Supply for merchandise returned $290. Received collections in full from customers billed on May 2. Paid Hilton Wholesale Supply in full, less discount. 29 Purchased merchandise for cash $2,850. Received $330 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise from Northern Distributors for $2,650, terms 2/10, n/30. Paid freight on May 17 purchase $330. Sold merchandise for cash $5,600. The cost of the merchandise sold was $4,200. Purchased merchandise from Toolware Inc. for $860, terms 3/10, n/30. Paid Northern Distributors in full, less discount. Made refunds to cash customers for returned merchandise $126. The returned merchandise was returned to inventory and had cost $98. 31 Sold merchandise on account for $1,200, terms n/30. The cost of the merchandise sold was $900. Pina Colada Hardware uses a perpetual inventory system and expects a return rate of 3% on all sales. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manual
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer with reason for all why the option is correct and why the other options are incorrect
Transcribed Image Text:Pina Colada Hardware Store Inc. completed the following merchandising transactions in the month of May 2025. At the beginning of
May, Pina Colada's ledger showed Cash of $9,000 and Common Shares of $9,000.
May
1
(a)
2
5
9
10
11
12
15
17
19
24
25
27
29
Purchased merchandise on account from Hilton Wholesale Supply for $9,000, terms 2/10, n/30.
Sold merchandise on account for $4,800, terms n/30. The cost of the merchandise sold was $3,900.
Received credit from Hilton Wholesale Supply for merchandise returned $290.
Received collections in full from customers billed on May 2.
Paid Hilton Wholesale Supply in full, less discount.
Purchased supplies for cash $960.
Purchased merchandise for cash $2,850.
Received $330 refund for return of poor-quality merchandise from supplier on cash purchase.
Purchased merchandise from Northern Distributors for $2,650, terms 2/10, n/30.
Paid freight on May 17 purchase $330.
Sold merchandise for cash $5,600. The cost of the merchandise sold was $4,200.
Purchased merchandise from Toolware Inc. for $860, terms 3/10, n/30.
Paid Northern Distributors in full, less discount.
Made refunds to cash customers for returned merchandise $126. The returned merchandise was returned to
inventory and had cost $98.
31 Sold merchandise on account for $1,200, terms n/30. The cost of the merchandise sold was $900.
Pina Colada Hardware uses a perpetual inventory system and expects a return rate of 3% on all sales.
Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round your answers to O decimal places, e.g.
5,275. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Account Titles and Explanation
Date
(To record sale of merchandise on account)
Debit
Credit
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