r. 2 Purchased merchandise on account from Dakota Supply Co. $6,900, ter 4 Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30. merchandise sold was $4,100. 5 Paid $240 freight on April 4 sale. 6 Received credit from Dakota Supply Co. for merchandise returned $50 11 Paid Dakota Supply Co. in full, less discount. 13 Received collections in full, less discounts, from customers billed on Ap 14 Purchased merchandise for cash $3,800. 16 Received refund from supplier for returned goods on cash purchase of 18 Purchased merchandise from Skywalker Distributors $4,500, FOB sl
r. 2 Purchased merchandise on account from Dakota Supply Co. $6,900, ter 4 Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30. merchandise sold was $4,100. 5 Paid $240 freight on April 4 sale. 6 Received credit from Dakota Supply Co. for merchandise returned $50 11 Paid Dakota Supply Co. in full, less discount. 13 Received collections in full, less discounts, from customers billed on Ap 14 Purchased merchandise for cash $3,800. 16 Received refund from supplier for returned goods on cash purchase of 18 Purchased merchandise from Skywalker Distributors $4,500, FOB sl
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![P5-2A Olaf Distributing Company completed the following merchandising transactions in the
month of April. At the beginning of April, the ledger of Olaf showed Cash of $9,000 and M. Olaf,
Capital of $9,000.
Apr. 2 Purchased merchandise on account from Dakota Supply Co. $6,900, terms 1/10, n/30.
4 Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30. The cost of the
merchandise sold was $4,100.
5 Paid $240 freight on April 4 sale.
6 Received credit from Dakota Supply Co. for merchandise returned $500.
11 Paid Dakota Supply Co. in full, less discount.
13 Received collections in full, less discounts, from customers billed on April 4.
14 Purchased merchandise for cash $3,800.
16 Received refund from supplier for returned goods on cash purchase of April 14, $500.
18 Purchased merchandise from Skywalker Distributors $4,500, FOB shipping point,
terms 2/10, n/30,
20 Paid freight on April 18 purchase $100.
23 Sold merchandise for cash $6,400. The merchandise sold had a cost of $5,120.
26 Purchased merchandise for cash $2,300.
27 Paid Skywalker Distributors in full, less discount.
29 Made refunds to cash customers for defective merchandise $90. The returned mer-
chandise had a scrap value of $30.
30 Sold merchandise on account $3,700, terms n/30. The cost of the merchandise sold was
$2,800.
Instructions
(a) Journalize the transactions using a perpetual inventory system.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46e9d3ed-7df8-4cda-96ff-369365a094bb%2F9ef1c382-4886-48fa-9081-3e05823b4acb%2Fm6ggpzm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:P5-2A Olaf Distributing Company completed the following merchandising transactions in the
month of April. At the beginning of April, the ledger of Olaf showed Cash of $9,000 and M. Olaf,
Capital of $9,000.
Apr. 2 Purchased merchandise on account from Dakota Supply Co. $6,900, terms 1/10, n/30.
4 Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30. The cost of the
merchandise sold was $4,100.
5 Paid $240 freight on April 4 sale.
6 Received credit from Dakota Supply Co. for merchandise returned $500.
11 Paid Dakota Supply Co. in full, less discount.
13 Received collections in full, less discounts, from customers billed on April 4.
14 Purchased merchandise for cash $3,800.
16 Received refund from supplier for returned goods on cash purchase of April 14, $500.
18 Purchased merchandise from Skywalker Distributors $4,500, FOB shipping point,
terms 2/10, n/30,
20 Paid freight on April 18 purchase $100.
23 Sold merchandise for cash $6,400. The merchandise sold had a cost of $5,120.
26 Purchased merchandise for cash $2,300.
27 Paid Skywalker Distributors in full, less discount.
29 Made refunds to cash customers for defective merchandise $90. The returned mer-
chandise had a scrap value of $30.
30 Sold merchandise on account $3,700, terms n/30. The cost of the merchandise sold was
$2,800.
Instructions
(a) Journalize the transactions using a perpetual inventory system.
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