Question

At the beginning of the current tennis season, on April 1, 2021, Kicked-Back Tennis Shop's inventory consisted of 50 tennis racquets at a cost of $40 each. Kicked-Back uses a perpetual inventory system and the earnings approach. The following transactions occurred in April:

Apr. 2		Purchased 160 additional racquets from Roberts Inc. for $6,400, terms n/30.
4		Determined that five of the racquets purchased on April 2 were damaged and returned them to Roberts Inc. Roberts Inc. credited Kicked-Back’s account.
5		Sold 45 racquets to Tennis Dome for $90 each, terms n/30.
6		Tennis Dome returned 15 of the racquets after determining it had purchased more racquets than it needed. Kicked-Back gave Tennis Dome a credit on its account and returned the racquets to inventory.
10		Sold 40 racquets at $90 each to cash customers.
12		Ten of these racquets were returned for cash. The customers claimed they never play tennis and had no idea how they had been talked into purchasing the racquets. Refunded cash to these customers and returned the racquets to inventory.
17		An additional 10 of the racquets sold on April 10 were returned because the racquets were damaged. The customers were refunded cash and the racquets were sent to a local recycler.
25		Sold 60 racquets to the Summer Club for $90 each, terms n/30.
29		Summer Club returned 25 of the racquets after the tennis pro had examined them and determined that these racquets were of inferior quality. Kicked-Back gave Summer Club a credit and decided to return the racquets to inventory with plans to sell them for the reduced price of $75 each.

Record the transactions for the month of April for Kicked-Back. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Post the opening balance and April’s transactions, and calculate the April 30 balances. (Post entries in the order of journal entries presented in the previous part.)

Answer 1

Date	Accounts Title	Dr	Cr
2-Apr	Inventory	$6,400
	Accounts Payable		$6,400
4-Apr	Accounts Payable (6400/160*5)	$200
	Inventory		$200
5-Apr	Accounts receivable	$4,050
	Sales (90*45)		$4,050
	Cost of good sold (45*40)	$1,800
	Inventory		$1,800
6-Apr	Sales Return	$1,350
	Accounts receivable (15*90)		$1,350
	Inventory	$600
	Cost of good sold (15*40)		$600
10-Apr	Cash	$3,600
	Sales (90*40)		$3,600
	Cost of good sold (40*40)	$1,600
	Inventory		$1,600
12-Apr	Sales Return	$900
	CAsh (10*90)		$900
	Inventory	$400
	Cost of good sold (10*40)		$400
17-Apr	Sales Return	$900
	CAsh (10*90)		$900
	Inventory	$400
	Cost of good sold (10*40)		$400
25-Apr	Accounts receivable	$5,400
	Sales (90*60)		$5,400
	Cost of good sold (60*40)	$2,400
	Inventory		$2,400
29-Apr	Sales Return	$2,250
	Accounts receivable (25*90)		$2,250
	Inventory	$1,000
	Cost of good sold (25*40)		$1,000

		Inventory
Beg Bal	$2,000	4-Apr	200
2-Apr	6400	5-Apr	1800
6-Apr	600	10-Apr	$1,600
12-Apr	400	25-Apr	2400
17-Apr	400
29-Apr	1000
end bal	$4,800
		Cost of gOod sold
5-Apr	1800	6-Apr	600
10-Apr	$1,600	12-Apr	400
25-Apr	2400	17-Apr	400
end bal	3400	29-Apr	1000
	Accounts Receivable
5-Apr	4050	6-Apr	1350
25th April	$5,400	29-Apr	2250
end bal	5850
	Sales
		5-Apr	4050
		10-Apr	$5,400
		25-Apr	5400
		end bal	14850
	Accounts payable
4-Apr	200	2-Apr	6400
		end bal	6200
	Sales Return
6-Apr	1350
12-Apr	900
17-Apr	900
29-Apr	2250
end bal	5400
	Cash
10-Apr	3600	12-Apr	900
end bal	1800	17-Apr	900

If any doubt please comment