Sales-Related and Purchase-Related Transactions Using Periodic Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year: July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice. 5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000. 7. Returned $6,850 of merchandise purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800. 22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000. 23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000. 28. Paid Parsley Co. a cash refund of $2,500 for damaged merchandise from sale of July 6. Parsley Co. kept the merchandise. 31. Paid MasterCard service fee of $1,650

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sales-Related and Purchase-Related Transactions Using Periodic Inventory System

The following were selected from among the transactions completed by Essex Company during July of the current year:

July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice.
5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000.
7. Returned $6,850 of merchandise purchased on July 5 from Kester Co.
13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7.
21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800.
22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000.
28. Paid Parsley Co. a cash refund of $2,500 for damaged merchandise from sale of July 6. Parsley Co. kept the merchandise.
31. Paid MasterCard service fee of $1,650.
Nov. 13
Accounts Payable-Moonlight Co. V
Cash v
Cash v
Nov. 14-sale
Sales v
Nov. 14-cost Cost of Merchandise Sold v
Merchandise Inventory v
Nov. 15
Accounts Payable-Papoose Creek Co. V
Cash v
Nov. 23
Cash v
Accounts Receivable-Quinn Co. V
Nov. 24-sale Accounts Receivable-Rabel Co. V
Sales
Nov. 24-cost Cost of Merchandise Sold
Merchandise Inventory v
I0 II II II II II II
Transcribed Image Text:Nov. 13 Accounts Payable-Moonlight Co. V Cash v Cash v Nov. 14-sale Sales v Nov. 14-cost Cost of Merchandise Sold v Merchandise Inventory v Nov. 15 Accounts Payable-Papoose Creek Co. V Cash v Nov. 23 Cash v Accounts Receivable-Quinn Co. V Nov. 24-sale Accounts Receivable-Rabel Co. V Sales Nov. 24-cost Cost of Merchandise Sold Merchandise Inventory v I0 II II II II II II
Nov. 3
Merchandise Inventory V
62,300
Accounts Payable-Moonlight Co. V
62,300 X
Cash v
Nov. 4-sale
34,690
Sales v
34,690
Nov. 4-cost
Cost of Merchandise Sold v
24,670
Merchandise Inventory v
24,670 V
Nov. 5
Merchandise Inventory
45,958
Accounts Payable-Papoose Creek Co. V
45,958 V
Accounts Payable-Moonlight Co. V
Nov. 6
Merchandise Inventory V
Accounts Receivable-Quinn Co. V
Nov. 8-sale
Sales v
Nov. 8-cost
Cost of Merchandise Sold v
Merchandise Inventory v
I II 1I I1
Transcribed Image Text:Nov. 3 Merchandise Inventory V 62,300 Accounts Payable-Moonlight Co. V 62,300 X Cash v Nov. 4-sale 34,690 Sales v 34,690 Nov. 4-cost Cost of Merchandise Sold v 24,670 Merchandise Inventory v 24,670 V Nov. 5 Merchandise Inventory 45,958 Accounts Payable-Papoose Creek Co. V 45,958 V Accounts Payable-Moonlight Co. V Nov. 6 Merchandise Inventory V Accounts Receivable-Quinn Co. V Nov. 8-sale Sales v Nov. 8-cost Cost of Merchandise Sold v Merchandise Inventory v I II 1I I1
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