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Chapter 6 HW: 2 Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies
Chapter 6 HW: 2
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
July 1. | Sold merchandise on account to Landscapes Co., $15,700, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,400. |
2. | Sold merchandise for $25,600 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $16,600. |
5. | Sold merchandise on account to Peacock Company, $30,800, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $20,000. |
8. | Sold merchandise for $12,200 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,300. |
13. | Sold merchandise to customers who used MasterCard cards, $9,000. The cost of merchandise sold was $5,700. |
14. | Sold merchandise on account to Loeb Co., $12,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $7,400. |
15. | Received check for amount due from Peacock Company for sale on July 5. |
16. | Issued credit memo for $1,900 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100. |
18. | Sold merchandise on account to Jennings Company, $6,100, terms FOB shipping point, 2/10, n/30. Paid $340 for freight and added it to the invoice. The cost of merchandise sold was $3,700. |
24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
28. | Received check for amount due from Jennings Company for sale of July 18. |
31. | Paid Black Lab Delivery Service $1,940 for merchandise delivered during July to customers under shipping terms of FOB destination. |
31. | Received check for amount due from Landscapes Co. for sale of July 1. |
Aug. 3. | Paid Hays Federal Bank $1,000 for service fees for handling MasterCard and VISA sales during July |
10. | Paid $2,170 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
Date Account Debit Credit July 1-sale Date Account Debit Credit July 1-cost Date Account Debit Credit July 2-sale Date Account Debit Credit July 2-cost Date Account Debit Credit July 5-sale Date Account Debit Credit July 5-cost Date Account Debit Credit July 8-sale Date Account Debit Credit July 8-cost Date Account Debit Credit July 13-sale Date Account Debit Credit July 13-cost Date Account Debit Credit July 14-sale Date Account Debit Credit July 14-cost Date Account Debit Credit July 15 Date Account Debit Credit July 16- return Date Account Debit Credit July 16-cost Date Account Debit Credit July 18-sale Date Account Debit Credit July 18- freight Date Account Debit Credit July 18-cost Date Account Debit Credit July 24 Date Account Debit Credit July 28 Date Account Debit Credit July 31- freight Date Account Debit Credit July 31- collection Date Account Debit Credit Aug. 3 Date Account Debit Credit Aug. 10Step by Step Solution
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