Reference no: EM132782520
Question 1: The following transactions occurred during the month of April in the operation of John Allen, Inc, a wholesaler who sells jewelry to retail stores. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write down a brief description in the column provided.
April 5 Purchased merchandise for $9,000 on account from International Jewelry Corporation, terms: 2/10, n/60.
April 16 Sold merchandise to Twin Jewelers on account for $3,000, terms 3/10, n/30. The merchandise had cost $1,500.
April 18 Sold merchandise to a customer for cash, $800. The merchandise had cost $300
April 19 Customer returned $150 of the merchandise from the sale on April 18 and was given a refund. The merchandise had cost $75.
April 26 Received full amount due from Twin Jewelers with discount
April 27 Paid shipping charges on merchandise purchased on April 5, $300.
April 30 Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of April is $7,000