Allen Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar. 1 Purchased $45,200 of merchandise from Brown Industries, invoice dated March 1, terms 2/15, n/30.

Mar. 2 Sold merchandise on credit to Clark Co., Invoice No. 854, for $36,000 (cost is $22,000).

Mar. 3 Purchased $1,900 of office supplies on credit from Lane Company, invoice dated March 3, terms n/10 EOM.

Mar. 3 Sold merchandise on credit to Jeffrey Wilson, Invoice No. 855, for $18,000 (cost is $10,800).

Mar. 6 Borrowed $96,000 cash from Federal Bank by signing a long-term note payable.

Mar. 9 Purchased $21,950 of office equipment on credit from Garcia Supply, invoice dated March 9, terms n/10 EOM.

Mar. 10 Sold merchandise on credit to Lindsey Martin, Invoice No. 856, for $14,400 (cost is $8,600).

Mar. 12 Received payment from Clark Co. for the March 2 sale less the discount.

Mar. 13 Sent Brown Industries Check No. 416 in payment of the March 1 invoice less the discount.

Mar. 13 Received payment from Jeffrey Wilson for the March 3 sale less the discount.

Mar. 14 Purchased $45,400 of merchandise from the Taylor Co., invoice dated March 13, terms 2/10, n/30.

Mar. 15 Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $21,500. Cashed the check and paid the employees.

Mar. 15 Cash sales for the first half of the month are $50,000 (cost is $30,000). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)

Mar. 16 Purchased $2,000 of store supplies on credit from Lane Company, invoice dated March 16, terms n/10 EOM.

Mar. 17 Received a $4,400 credit memorandum from Taylor Co. for the return of unsatisfactory merchandise purchased on March 14.

Mar. 19 Received a $3,290 credit memorandum from Garcia Supply for office equipment received on March 9 and returned for credit.

Mar. 20 Received payment from Lindsey Martin for the sale of March 10 less the discount.

Mar. 23 Issued Check No. 418 to Taylor Co. in payment of the invoice of March 13 less the March 17 return and the discount.

Mar. 27 Sold merchandise on credit to Lindsey Martin, Invoice No. 857, for $32,000 (cost is $19,200).

Mar. 28 Sold merchandise on credit to Jeffrey Wilson, Invoice No. 858, for $10,800 (cost is $6,500).

Mar. 31 Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $21,500. Cashed the check and paid the employees.

Mar. 31 Cash sales for the last half of the month are $45,000 (cost is $27,000).

Problem Sections:

1. Each transaction is recorded in either a special journal, or directly in the general journal. If a transaction is to be recorded in a special journal, select "Entered in special journal" in the first account field. Otherwise, prepare the general journal entry.

2. Enter all transactions that are properly included in the Cash Receipts Journal.

3. Enter all transactions that are properly included in the Cash Disbursements Journal.

4. Enter all transactions that are properly included in the Purchases Journal.

5. Enter all transactions that are properly included in the Sales Journal.