Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:
|Mar. 2.||Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $12,490.|
|3.||Sold merchandise for $10,550 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,530.|
|4.||Sold merchandise on account to Empire Co., $55,380, terms FOB shipping point, n/eom. TThe cost of the goods sold was $32,910.|
|5.||Sold merchandise for $29,600 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $18,720.|
|12.||Received check for amount due from Equinox Co. for sale on March 2.|
|14.||Sold merchandise to customers who used American Express cards, $14,800. The cost of the goods sold was $8,700.|
|16.||Sold merchandise on account to Targhee Co., $28,400, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $17,340.|
|18.||Issued credit memo for $4,700 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,080.|
|19.||Sold merchandise on account to Vista Co., $7,700, terms FOB shipping point, 2/10, n/30. Paid $70 for freight and added it to the invoice. The cost of the goods sold was $4,600.|
|26.||Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.|
|28.||Received check for amount due from Vista Co. for sale of March 19.|
|31.||Received check for amount due from Empire Co. for sale of March 4.|
|31.||Paid Fleetwood Delivery Service $5,080 for merchandise delivered during March to customers under shipping terms of FOB destination.|
|Apr. 3.||Paid City Bank $850 for service fees for handling MasterCard and American Express sales during March.|
|15.||Paid $6,937 to state sales tax division for taxes owed on sales.|
Journalize the entries to record the transactions of Amsterdam Supply Co. For a compound transaction, if no entry is required, leave the entry box blank.
|Mar. 2-sale||Accounts Receivable-Equinox Co.|
|Mar. 2-cost||Cost of Goods Sold|
Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.
Journalize the entries to record the transactions of Amsterdam Supply Co.
|Date||Account titles and Explanation||Debit||Credit|
|Mar 2||Accounts Receivable-Equinox Co.||$18,900|
|Mar 2||Cost of goods sold||$12,490|
|Sales tax payable ($10,550 *6%)||$633|
|Mar 3||Cost of goods sold||$7,530|
|Mar 4||Accounts receivable - Empire Co.||$55,380|
|Mar 4||Cost of goods sold||$32,910|
|Sales tax payable ($29,600 * 6%)||$1,776|
|Mar 5||Cost of goods sold||$18,720|
|Discount ($18,900 * 1%)||$189|
|Accounts receivable - Equinox Co.||$18,900|
|Mar 14||Cost of goods sold||$8,700|
|Mar 16||Accounts receivable - Targhee Co.||$28,400|
|Mar 16||Cost of goods sold||$17,340|
|Mar 18||Sales returns and allowances||$4,700|
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