Claypool Hardware is the only hardware store in a remote area of northern Minnesota. Some of Claypool's transactions during the current year are as follows:
Nov. 5 Sold lumber on account to Bemidji Construction, $13,390. The inventory subsidiary ledger shows the cost of this merchandise was $9,105.
Nov. 9 Purchased tools on account from Owatonna Tool Company, $3,800.
Dec. 5 Collected in cash the $13,390 account receivable from Bemidji Construction.
Dec. 9 Paid the $3,800 owed to Owatonna Tool Company.
Dec. 31
Claypool's personnel counted the inventory on hand and determined its cost to be $182,080. The accounting records, however, indicate inventory of $183,790 and a cost of goods sold of $695,222. The physical count of the inventory was observed by the company's auditors and is considered correct.
Instructions
a.
Prepare journal entries to record these transactions and events in the accounting records of Claypool Hardware. (The company uses a perpetual inventory system.)(Omit the "tiny_mce_markerquot; sign in your response.)