Sales-Related Transactions Using Perpetual Inventory SystemThe 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.Required: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.DateAccountDebitCreditMar. 2-saleAccounts Receivable-Equinox Co.    Sales   DateAccountDebitCreditMar. 2-costCost of Goods Sold    Inventory   DateAccountDebitCreditMar. 3-sale           DateAccountDebitCreditMar. 3-cost       DateAccountDebitCreditMar. 4-sale       DateAccountDebitCreditMar. 4-cost       DateAccountDebitCreditMar. 5-sale           DateAccountDebitCreditMar. 5-cost       DateAccountDebitCreditMar. 12       DateAccountDebitCreditMar. 14-sale       DateAccountDebitCreditMar. 14-cost       DateAccountDebitCreditMar. 16-sale       DateAccountDebitCreditMar. 16-cost       DateAccountDebitCreditMar. 18-return       DateAccountDebitCreditMar. 18-cost       DateAccountDebitCreditMar. 19-sale       DateAccountDebitCreditMar. 19-freight       DateAccountDebitCreditMar. 19-cost       DateAccountDebitCreditMar. 26       DateAccountDebitCreditMar. 28       DateAccountDebitCreditMar. 31-collection       DateAccountDebitCreditMar. 31-freight       DateAccountDebitCreditApr. 3       DateAccountDebitCreditApr. 15

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Asked Feb 22, 2020
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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.

Required:

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.

Date Account Debit Credit
Mar. 2-sale Accounts Receivable-Equinox Co.     
  Sales     

Date Account Debit Credit
Mar. 2-cost Cost of Goods Sold     
  Inventory     

Date Account Debit Credit
Mar. 3-sale      
       
       

Date Account Debit Credit
Mar. 3-cost      
       

Date Account Debit Credit
Mar. 4-sale      
       

Date Account Debit Credit
Mar. 4-cost      
       

Date Account Debit Credit
Mar. 5-sale      
       
       

Date Account Debit Credit
Mar. 5-cost      
       

Date Account Debit Credit
Mar. 12      
       

Date Account Debit Credit
Mar. 14-sale      
       

Date Account Debit Credit
Mar. 14-cost      
       

Date Account Debit Credit
Mar. 16-sale      
       

Date Account Debit Credit
Mar. 16-cost      
       

Date Account Debit Credit
Mar. 18-return      
       

Date Account Debit Credit
Mar. 18-cost      
       

Date Account Debit Credit
Mar. 19-sale      
       

Date Account Debit Credit
Mar. 19-freight      
       

Date Account Debit Credit
Mar. 19-cost      
       

Date Account Debit Credit
Mar. 26      
       

Date Account Debit Credit
Mar. 28      
       

Date Account Debit Credit
Mar. 31-collection      
       

Date Account Debit Credit
Mar. 31-freight      
       

Date Account Debit Credit
Apr. 3      
       

Date Account Debit Credit
Apr. 15      
       
 
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Expert Answer

Step 1

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  
       Sales   $18,900
       
Mar 2 Cost of goods sold $12,490  
       Inventory   $12,490
       
Mar 3 Cash $11,183  
       Sales   $10,550
       Sales tax payable ($10,550 *6%)   $633
       
Mar 3 Cost of goods sold $7,530  
       Inventory   $7,530
       
Mar 4 Accounts receivable - Empire Co. $55,380  
       Sales   $55,380
       
Mar 4 Cost of goods sold $32,910  
       Inventory   $32,910
       
Mar 5 Cash $31,376  
       Sales   $29,600
       Sales tax payable ($29,600 * 6%)   $1,776

 

Step 2
Mar 5 Cost of goods sold $18,720  
       Inventory   $18,720
       
Mar 12 Cash $18,711  
  Discount ($18,900 * 1%) $189  
       Accounts receivable - Equinox Co.   $18,900
       
Mar 14 Cash $14,800  
       Sales   $14,800
       
Mar 14 Cost of goods sold $8,700  
       Inventory   $8,700
       
Mar 16 Accounts receivable - Targhee Co. $28,400  
       Sales   $28,400
       
Mar 16 Cost of goods sold $17,340  
       Inventory   $17,340
       
Mar 18 Sales returns and allowances $4,700  
        Accounts re...

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