Date Accounts Debit Credit

June Merchandise Inventory P 1,600,000

2
Accounts Payable P 1,600,000

Purchased tennis rackets and balls on account from Noe Valley Co. for 1,600,000

Date Accounts Debit Credit

June Merchandise Inventory P 80,000

5
Cash P 80,000

Received credit from Noe Valley Co. for merchandise returned for 100,000

Date Accounts Debit Credit

June Accounts Payable P 100,000

7
Merchandise Inventory P 100,000

Sold merchandise on account, 1,100,000

Date Accounts Debit Credit

June Accounts Receivable P 1,100,000

9
Sales P 1,100,000

Sold merchandise on account, 1,100,000

Cost of Sales P 730,000

Merchandise Inventory P 730,000

Sold merchandise costing 730,000

Date Accounts Debit Credit

June Merchandise Inventory P 600,000

10
Merchandise Inventory P 6,000
Cash 594,000
Purchased shoes, shirts and other accessories from Lombard Sportswear for 600,000 paid with cash

Date Accounts Debit Credit

June Accounts Payable P 1,500,000

10
Merchandise Inventory P 30,000
Cash 1,470,000
Paid remaining balance of Noe Valley Co. purchase
 Date Accounts Debit Credit

June Cash P 60,000

16
Merchandise Inventory P 60,000

Received cash refund of 60,000 from Lombard Sportswear for merchandise returned

Date Accounts Debit Credit

June Cash P 400,000

17
Sales P 400,000

Received cash of 400,000 for tennis shirts sold to customers

Cost of Sales P ---

Merchandise Inventory P ---

Sold 400,000 worth of tennis shirts to customers

Date Accounts Debit Credit

June Sales Return and Allowances P 40,000

26
Cash P 40,000

Received cash of 400,000 for tennis shirts sold to customers

Merchandise Inventory P ---

Cost of Sales P ---

Customer returned tennis shirts that did not fit

CASH
Debit Credit
June 1 2,500,000 June 5 80,000
June 16 60,000 June 10 594,000
June 17 400,000 June 11 1,470,000
June 26 40,000
BALANCE 776,000

ACCOUNTS RECEIVABLE
Debit Credit
June 9 1,100,000

BALANCE 1,100,000
 MERCHANDISE INVENTORY
Debit Credit
June 1 3,500,000 June 7 100,000
June 2 1,600,000 June 9 730,000
June 5 80,000 June 10 6,000
June 10 600,000 June 11 30,000
June 26 ??? June 16 60,000
June 17 ???
BALANCE 4,854,000

ACCOUNTS PAYABLE
Debit Credit
June 7 100,000 June 2 1,600,000
June 11 1,500,000
1,600,000 1,600,000

BALANCE 0

MISSION, CAPITAL
Debit Credit
June 1 6,000,000

BALANCE 6,000,000

SALES
Debit Credit
June 9 1,100,000
June 17 400,000
BALANCE 1,500,000

SALES RETURN AND ALLOWANCES

Debit Credit
June 26 40,000
BALANCE 40,000

SALES RETURN AND ALLOWANCES

Debit Credit
June 26 40,000
BALANCE 40,000
 Lola’s All-Star Tennis Shop
Trial Balance
June 30, 2009

Accounts DEBIT CREDIT

Cash 776,000
Accounts Receivable 1,100,000
Merchandise Inventory 4,854,000
Accounts Payable 0
Mission, Capital 6,000,000
Sales 1,500,000
Sales Return and Allowances 40,000
Cost of Sales 730,000
TOTAL 7,500,000 7,500,000
 Date Accounts Debit Credit

June Purchases P 1,600,000

2
Accounts Payable P 1,600,000

Purchased tennis rackets and balls on account from Noe Valley Co. for 1,600,000

Date Accounts Debit Credit

June Freight-in P 80,000

5
Cash P 80,000

Paid freight on June 2 purchase for 80,000

Date Accounts Debit Credit

June Accounts Payable P 100,000

7
Purchase Return and Allowances P 100,000

Received credit from Noe Valley Co. for merchandise returned for 100, 000

Date Accounts Debit Credit

June Accounts Receivable P 1,100,000

9
Sales P 1,100,000

Sold merchandise on account, 1,100,000

Date Accounts Debit Credit

June Purchases P 600,000

10
Purchase Discount P 6,000
Cash 594,000
Purchased shoes, shirts and other accessories from Lombard Sportswear for 600,000 paid with cash

Date Accounts Debit Credit

June Cash P 60,000

16
Purchase Return and Allowances P 60,000

Received cash refund of 60,000 from Lombard Sportswear for merchandise returned
 Date Accounts Debit Credit

June Cash P 400,000

17
Sales P 400,000

Received cash of 400,000 for tennis shirts sold to customers

Date Accounts Debit Credit

June Sales Return and Allowances P 40,000

26
Cash P 40,000

Received cash of 400,000 for tennis shirts sold to customers

CASH
Debit Credit
June 1 2,500,000 June 5 80,000
June 16 60,000 June 10 594,000
June 17 400,000 June 11 1,470,000
June 26 40,000
2,960,000 2,182,000
BALANCE 776,000

ACCOUNTS RECEIVABLE
Debit Credit
June 9 1,100,000
BALANCE 1,100,000

ACCOUNTS PAYABLE
Debit Credit
June 7 100,000 June 2 1,600,000
June 11 1,500,000
1,600,000 1,600,000
BALANCE 0

MISSION, CAPITAL
Debit Credit
June 1 6,000,000
BALANCE 6,000,000

SALES
Debit Credit
June 9 1,100,000
June 17 400,000
BALANCE 1,500,000
 SALES RETURN AND ALLOWANCES
Debit Credit
June 26 40,000
BALANCE 40,000

PURCHASES
Debit Credit
June 1 3,500,000
June 2 1,600,000
June 10 600,000
BALANCE 5,700,000

PURCHASE RETURN AND ALLOWANCES

Debit Credit
June 7 100,000
June 16 60,000
BALANCE 160,000

PURCHASE DISCOUNT
Debit Credit
June 10 6,000
June 11 30,000
BALANCE 36,000

FREIGHT-IN
Debit Credit
June 5 80,000
BALANCE 80,000

Lola’s All-Star Tennis Shop

Trial Balance
June 30, 2009

Accounts DEBIT CREDIT

Cash 776,000
Accounts Receivable 1,100,000
Accounts Payable 0
Mission, Capital 6,000,000
Mission, Capital 1,500,000
Sales Return and Allowances 40,000
Purchases 5,700,000
Purchase Return and Allowances 160,000
Purchase Discount 36,000
Freight-In 80,000
TOTAL 7,696,000 7,696,000