Q1

High Country Ski Shop is a retail store that sells ski equipment and clothing. High Country Ski Shop commenced business on September 1, 20X1. The firm purchases merchandise on open account. The firms purchases, purchase returns and allowances, and cash payments on account during September 20X1 follow:

DATE			TRANSACTIONS
20X1
Sept.	2		Purchased ski boots for $7,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
	3		Purchased skis for $13,200 from Black Ice Supply Company, Invoice 5916; terms 3/10, n/30.
	7		Received Credit Memorandum 165 for $1,100 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
	11		Purchased ski jackets for $4,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
	12		Issued Check 104 to Black Ice Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
	22		Purchased ski poles for $5,760 plus a freight charge of $170 from Black Ice Supply Company, Invoice 5950; terms 3/10, n/30.
	23		Purchased ski pants for $3,200 from White Fire Ski Goods, Invoice 528, terms n/30.
	25		Received Credit Memorandum 245 for $320 from White Fire Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
	27		Purchased ski sweaters for $3,750 plus a freight charge of $200 from Colorado Ski Shop, Invoice 6722, terms n/30.
	30		Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required: Record the transactions in a general journal. Analyze: What was the amount of the cash discount on September 12?

Q2

Bennington Company (buyer) and Sanchez, Inc. (seller), engaged in the following transactions during January 20X1:

Bennington Company

DATE			TRANSACTIONS
20X1
Jan.	8		Issued Check 2101 for $2,254 on account to Sanchez, Inc., in payment of Invoice 1885 dated December 30, 20X0, less cash discount of $46.
	10		Purchased merchandise for $1,150 from Sanchez, Inc., Invoice 1920; terms 2/10, n/30.
	15		Received Credit Memorandum 320 from Sanchez, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
	19		Paid amount due to Sanchez, Inc., for Invoice 1920 of January 10, less the return of January 15 and less the cash discount, Check 2130.
	30		Purchased merchandise for $2,500 from Sanchez, Inc., Invoice 1950; terms 2/10, n/30.

GENERAL LEDGER ACCOUNTSBENNINGTON COMPANY 201 Accounts Payable, $2,300 Cr.

ACCOUNTS PAYABLE LEDGER ACCOUNTBENNINGTON COMPANY Sanchez, Inc., $2,300

Sanchez, Inc.

DATE			TRANSACTIONS
20X1
Jan.	8		Received payment of $2,254 on account from Bennington Company in payment of Invoice 1885 dated December 30, 20X0, less cash discount of $46.
	10		Sold merchandise for $1,150 on account to Bennington Company, Invoice 1920, terms 2/10, n/30.
	15		Issued Credit Memorandum 320 to Bennington Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
	19		Received payment from Bennington Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount.
	30		Sold merchandise for $2,500 to Bennington Company, Invoice 1950; terms 2/10, n/30.

GENERAL LEDGER ACCOUNTSSANCHEZ, INC. 111 Accounts Receivable, $2,300 Dr.

ACCOUNTS RECEIVABLE LEDGER ACCOUNTSANCHEZ, INC. Bennington Company, $2,300

Required:

1a. Journalize the transactions above in a general journal for Bennington Company.

1b. Journalize the transactions above in a general journal for Sanchez, Inc.

2. Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bowden Company.

3. Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Song, Inc.

Analyze: What is the balance of the accounts payable for Sanchez, Inc., in the Bennington Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bennington Company in the Sanchez, Inc., accounts receivable subsidiary ledger?