Homework answers / question archive / Eagle Hardware Store Ltd

Eagle Hardware Store Ltd

Accounting

Share With

Eagle Hardware Store Ltd. completed the following merchandising transactions in the month of May 2015. At the beginning of May, Eagle s ledger showed Cash $7,000; Accounts Receivable $1,500; Merchandise Inventory $3,500; Common Shares $8,000; and Retained Earnings $4,000. Eagle Hardware uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,800, terms 1/10, n/30, FOB shipping point. 3 Freight charges of $145 were paid by the appropriate party on the merchandise purchased on May 1. 4 Sold merchandise on account to Shep Ltd. for $3,500, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100. 7 Freight charges of $90 were paid by the appropriate party on the May 4 sale. 8 Received a $200 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $400 cash. 14 Received payment in full from Shep Ltd. for merchandise sold on account on May 4. 15 Collected $1,000 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts. 18 Purchased merchandise from Harlow Distributors Inc. for $2,000, terms n/30, FOB destination. 21 Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise. 22 Sold merchandise to various customers for $6,500 cash. The cost of the merchandise was $3,900. 29 Paid a $100 cash re