C. R. McIntyre Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year:
May 2 Received $411.60 cash from N. Rojas in payment of April 23 invoice of $420, less cash discount.
5 Received $2,085 cash in payment of $2,000 note receivable and interest of $85.
8 Sold merchandise on account to G. Soto, invoice no. 862, $830.
9 Received $11,838.40 cash from D. Maddox in payment of April 30 invoice of $12,080, less cash discount.
15 Received cash from G. Soto in payment of invoice no. 862, less cash discount.
16 Cash sales for first half of May, $3,259.
19 Received $296 cash from R. O. Higgins in payment of April 14 invoice, no discount.
22 Sold merchandise on account to N. T. Jennings, invoice no. 863, $753.
25 Received $239 cash refund for return of defective equipment bought in April for cash.
28 Sold merchandise on account to M. E. Mueller, invoice no. 864, $964.
31 Cash sales for second half of May, $4,728.
Required
- 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used.
- 2. If you are using Working Papers, total and rule the journals. Prove the equality of the debit and credit totals.
Want to see the full answer?
Check out a sample textbook solutionChapter 10 Solutions
College Accounting (Book Only): A Career Approach
Additional Business Textbook Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Fundamentals of Financial Accounting
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Financial Accounting: Information for Decisions