J. Akbar, a former professional tennis star, operates Akbar's Tennis Shop at the Miller Lake Resort. At

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Question:

J. Akbar, a former professional tennis star, operates Akbar's Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Ackbar's Tennis Shop showed Cash $6,600; Merchandise Inventory $2,400; and Common Stock $3,500. The following transactions were completed during April.

Apr. 4 Purchased racquets and balls from Jay-Mac Co. $740, FOB shipping point, terms 2/10,n/30.

6 Paid freight on purchase from Jay-Mac Co. $40.

8 Sold merchandise to members $1,150, terms n/30. The merchandise sold had a cost of $790.

10 Received credit of $40 from Jay-Mac Co. for a damaged racquet that was returned.

11 Purchased tennis shoes from Venus Sports for cash, $420.

13 Paid Jay-Mac Co. in full

14 Purchased tennis shirts and shorts from Serena's Sportswear $700, FOB shipping point, terms 3/10, n/60.

15Received cash refund of $50 from Venus Sports for damaged merchandise that was returned.

17Paid freight on Serena's Sportswear purchase $30.

18Sold merchandise to members $430, terms n/30. The cost of the merchandise sold was $830.

20 Received $500 in cash from members in settlement of their accounts.

21Paid Serena's Sportswear in full.

27 Granted an allowance of $30 to members for tennis clothing that did not fit properly.

30 Received cash payments on account from members, $760.

The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 311 Com-mon Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 505 Cost of Goods Sold.

Instructions

(a)Journalize the April transactions using a perpetual inventory system.

(b)Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for the journal reference.)