Create journal:

Jim's Lawn Care has purchased flowers and shrubs for spring plantings for his clients.

Record the following transactions for the purchase and sale of the merchandise:

 

Purchased merchandise on account from Menne Nursery for $500, terms FOB destination, n/30.

 

Purchased merchandise on account from Frank's Flowers for $1,000, terms FOB shipping point, 2/10,n/30. Freight of $25 was added to the invoice.

 

Sold merchandise on account to Mr. Adams for $700, n/15. The cost of the merchandise was $450.

 

Purchased merchandise on account from Frank's Flowers for $850, terms FOB destination, 2/10,n/30.

 

Received full payment from Mr. Adams.

 

Sold merchandise on account to Allen Investing Group for $1,500, terms n/30. The cost of the merchandise was $1,000.

 

Paid Menne Nursery for the purchase in a.

 

Sold merchandise to cash customers for $1,250. The cost of the merchandise was $900.

 

Paid Frank's Flowers for the purchase is b.