Adam Nichols, a former disc golf star, operates Adam’s Discorama. At the beginning of the current season on April 1, the ledger of Adam’s Discorama showed Cash $1,800, Inventory $2,500, and Owner’s Capital $4,300. The following transactions were completed during April.

Apr. 5 Purchased golf discs, bags, and other inventory on account from Rayford Co. $1,200, FOB shipping point, terms 2/10, n/60.

7 Paid freight on the Rayford purchase $50.

9 Received credit from Rayford Co. for merchandise returned $100.

10 Sold merchandise on account for $900, terms n/30. The merchandise sold had a cost of $540.

12 Purchased disc golf shirts and other accessories on account from Galaxy Sportswear $670, terms 1/10, n/30.

14 Paid Rayford Co. in full, less discount.

17 Received credit from Galaxy Sportswear for merchandise returned $70.

20 Made sales on account for $610, terms n/30. The cost of the merchandise sold was $370.

21 Paid Galaxy Sportswear in full, less discount.

27 Granted an allowance to customers for clothing that was flawed $20.

30 Received payments on account from customers $900.

The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 301 Owner’s Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and 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.)

(c) Prepare a trial balance on April 30, 2014.