Selected accounts from the chart of accounts of Mercer Company are shown below.

101 Cash ............401 Sales Revenue

112 Accounts Receivable .......412 Sales Returns and Allowances

120 Inventory ........... 414 Sales Discounts

126 Supplies ............505 Cost of Goods Sold

157 Equipment ...........726 Salaries and Wages Expense

201 Accounts Payable

The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions.

Jan. 3 Purchased merchandise on account from Gallagher Co. $9,000.

4 Purchased supplies for cash $80.

4 Sold merchandise on account to Wheeler $5,250, invoice no. 371, terms 1/10, n/30.

5 Returned $300 worth of damaged goods purchased on account from Gallagher

Co. on January 3.

6 Made cash sales for the week totaling $3,150.

8 Purchased merchandise on account from Phegley Co. $4,500.

9 Sold merchandise on account to Linton Corp. $5,400, invoice no. 372, terms 1/10, n/30.

11 Purchased merchandise on account from Cora Co. $3,700.

13 Paid in full Gallagher Co. on account less a 2% discount.

13 Made cash sales for the week totaling $6,260.

15 Received payment from Linton Corp. for invoice no. 372.

15 Paid semi-monthly salaries of $14,300 to employees.

17 Received payment from Wheeler for invoice no. 371.

17 Sold merchandise on account to Delaney Co. $1,200, invoice no. 373, terms

1/10, n/30.

19 Purchased equipment on account from Dozier Corp. $5,500.

20 Cash sales for the week totaled $3,200.

20 Paid in full Phegley Co. on account less a 2% discount.

23 Purchased merchandise on account from Gallagher Co. $7,800.

24 Purchased merchandise on account from Atchison Corp. $5,100.

27 Made cash sales for the week totaling $4,230.

30 Received payment from Delaney Co. for invoice no. 373.

31 Paid semi-monthly salaries of $13,200 to employees.

31 Sold merchandise on account to Wheeler $9,330, invoice no. 374, terms 1/10, n/30.

Mercer Company uses the following journals.

1. Sales journal.

2. Single-column purchases journal.

3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.

4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr.,

Inventory Cr., and Cash Cr.

5. General journal.

Instructions

Using the selected accounts provided:

(a) Record the January transactions in the appropriate journal noted.

(b) Foot and cross-foot all special journals.

(c) Show how postings would be made by placing ledger account numbers and check-marks as needed in the journals. (Actual posting to ledger accounts is not required.)