During April, Bloom Garden Supply Company experienced the following business events. The company uses the periodic inventory system.1) April 4 Purchased $10,000 of merchandise on account, terms 1/10, n/30, FOB shipping point.2) April 5 Paid shipping cost of $1,100 on the April 4 purchase.3) April 6 Returned $1,200 of the merchandise purchased on April 4.4) April 7 Sold merchandise for $5,800 on account, terms 2/10, n/30, FOB Destination.5) April 7 Paid the shipping cost of $350 on the previous sale.6) April 10 Recorded the discount and paid the amount due from the purchase of merchandise on April 4.7) April 28 Sold merchandise for $7,200 cash.Required: a) Record the events in general journal format.b) Bloom's beginning inventory balance for April was $35,000. A physical count of
inventory on April 30 revealed $33,600 of merchandise on hand. Calculate Bloom's cost of goods available for sale and cost of goods sold for April.
What will be an ideal response?
a) 
b) $10,112
a) Event 6: Purchase discount = (Purchase of $10,000 ? Return of $1,200) × 1% = $88
Cash payment = Balance in accounts payable of ($10,000 ? $1,200 ? $88) = $8,712
b) 
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