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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.

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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. 10

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