Crystal Clear Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. Crystal Clear uses the perpetual inventory system. During December 2018, Crystal Clear completed the following transactions:
Dec. 2 Purchased 1,000 units of inventory for $4,000 on account from Sparkle Company on terms, 5/10, n/20.
5 Purchased 1,200 units of inventory from Borax on account with terms 4/10, n/30. The total invoice was for $6,000, which included a $300 freight charge.
7 Returned 300 units of inventory to Sparkle from the December 2 purchase (cost $1,200).
9 Paid Borax.
11 Sold 500 units of goods to Happy Maids for $5,500 on account with terms n/30. Crystal Clear's cost of the goods was $2,000.
12 Paid Sparkle.
15 Received 100 units with a retail price of $1,100 back from customer Happy Maids. The goods cost Crystal Clear $400.
21 Received payment from Happy Maids, settling the amount due in full.
28 Sold 500 units of goods to Bridget, Inc. on account for $6,500 (cost $2,022).
Terms 1/15, n/30.
29 Paid cash for utilities of $550.
30 Paid cash for Sales Commission Expense of $214.
31 Received payment from Bridget, Inc., less discount.
Requirements
1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal (omit Sales Discounts Forfeited column), a purchases journal, a cash payments journal (omit the Check No. column), and a general journal.
2. Total each column of the special journals. Show that total debits equal total credits in each special journal.