Data for In the Pines Golf Shop are presented in P5-4A.

In P5-4A.

Apr. 3 Purchased golf bags, clubs, and balls on account from Balata Corp. for $3,200, terms 1/10, n/30, FOB shipping point.

5 Freight of $286 was paid by the appropriate party on the April 3 purchase from Balata.

7 Sold merchandise on account to members for $9,750, terms n/30. The cost of the merchandise sold was $5,850.

9 Received a $320 purchase allowance from Balata for returned merchandise.

11 Paid Balata in full.

14 Received payments on account from members, $4,150.

16 Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear Limited for $1,300, terms 2/10, n/30.

17 Received a $100 credit from Arrow Sportswear for returned merchandise.

20 Sold merchandise on account to members for $11,100, terms n/30. The cost of the merchandise sold was $6,200.

24 Paid Arrow Sportswear in full.

25 Received payments on account from members, $4,375.

27 Granted an $85 sales allowance to a member for a flaw in the clothing they had purchased. No merchandise was returned.

Instructions

(a) Record the April transactions for In the Pines Golf Shop, assuming it uses a periodic inventory system instead of a perpetual inventory system. Round all calculations to the nearest dollar.

(b) Set up T accounts, enter the opening balances, and post the transactions prepared in part (a).

(c) Prepare a trial balance as at April 30.

(d) The inventory count on April 30 determined that merchandise costing $11,763 was on hand. Prepare the adjusting journal entry needed at the end of the period to update the Inventory and Cost of Goods Sold accounts.