At the beginning of the current golf season, on April 1, 2012, the general ledger of Thousand Oaks Golf Shop showed Cash $3,500; Merchandise Inventory $1,500; Common Shares $3,000; and Retained Earnings $2,000. Thousand Oaks Golf Shop uses a perpetual inventory system.

The following transactions occurred in April:

Apr. 3 Purchased golf bags, clubs, and balls on account from Balata Corp. for $2,700, terms 1/10, n/30, FOB shipping point.

6 Freight of $70 was paid by the appropriate party on the April 3 purchase from Balata.

9 Received a $150 purchase allowance from Balata for returned merchandise.

10 Sold merchandise on account to members for $2,950, terms n/30. The cost of the merchandise sold was $1,770.

12 Paid Balata in full.

14 Received payments on account from members, $1,250.

16 Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear Limited for $770, terms 2/10, n/30.

17 Received a $75 credit from Arrow Sportswear for returned merchandise.

20 Sold merchandise on account to members for $1,890, terms n/30. The cost of the merchandise sold was $1,130.

24Paid Arrow Sportswear in full.

27 Granted a $50 sales allowance to a member for soiled clothing. No merchandise was returned.

Instructions

(a) Prepare T accounts and enter the opening balances.

(b) Record and post the April transactions for Thousand Oaks Golf Shop. Round all calculations to the nearest dollar.

(c) Prepare trial balances at April 30, 2012