Data for the Thousand Oaks Golf Shop are presented in P5-4A. In P5-4A At the beginning of

Question:

Data for the Thousand Oaks Golf Shop are presented in P5-4A.

In P5-4A

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, assuming it uses a periodic inventory system instead of a perpetual inventory system. Round all calculations to the nearest dollar.