Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GL0701 - Based on Problem 7-1A LO P1 Sanchez Company completes these transactions and events during March of the current year (terms for all its

GL0701 - Based on Problem 7-1A LO P1

Sanchez 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 $45,300 of merchandise from Lee Industries, invoice dated March 1, terms 2/15, n/30.
Mar. 2 Sold merchandise on credit to Gonzalez Co., Invoice No. 854, for $37,200 (cost is $22,000).
Mar. 3 Purchased $1,300 of office supplies on credit from Walker Company, invoice dated March 3, terms n/10 EOM.
Mar. 3 Sold merchandise on credit to Jose Garcia, Invoice No. 855, for $19,000 (cost is $11,400).
Mar. 6 Borrowed $98,000 cash from First Bank by signing a long-term note payable.
Mar. 9 Purchased $22,050 of office equipment on credit from Perez Supply, invoice dated March 9, terms n/10 EOM.
Mar. 10 Sold merchandise on credit to Hillary Mannion, Invoice No. 856, for $15,200 (cost is $9,100).
Mar. 12 Received payment from Gonzalez Co. for the March 2 sale less the discount.
Mar. 13 Sent Lee Industries Check No. 416 in payment of the March 1 invoice less the discount.
Mar. 13 Received payment from Jose Garcia for the March 3 sale less the discount.
Mar. 14 Purchased $46,200 of merchandise from the Hall 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, $21,700. Cashed the check and paid the employees.
Mar. 15 Cash sales for the first half of the month are $35,000 (cost is $21,000). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
Mar. 16 Purchased $2,200 of store supplies on credit from Walker Company, invoice dated March 16, terms n/10 EOM.
Mar. 17 Received a $4,200 credit memorandum from Hall Co. for the return of unsatisfactory merchandise purchased on March 14.
Mar. 19 Received a $3,310 credit memorandum from Perez Supply for office equipment received on March 9 and returned for credit.
Mar. 20 Received payment from Hillary Mannion for the sale of March 10 less the discount.
Mar. 23 Issued Check No. 418 to Hall Co. in payment of the invoice of March 13 less the March 17 return and the discount.
Mar. 27 Sold merchandise on credit to Hillary Mannion, Invoice No. 857, for $33,000 (cost is $19,800).
Mar. 28 Sold merchandise on credit to Jose Garcia, Invoice No. 858, for $11,400 (cost is $6,800).
Mar. 31 Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $21,700. Cashed the check and paid the employees.
Mar. 31 Cash sales for the last half of the month are $31,500 (cost is $18,900).

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Mar. 1 Purchased $45,300 of merchandise from Lee Industries, invoice dated March 1, terms 2/15, n/30 Mar. 2 Sold merchandise on credit to Gonzalez Co., Invoice No. 854, for $37,200 (cost is $22,000) Mar. 3 Purchased $1,300 of office supplies on credit from Walker Company, invoice dated March 3, terms n/10 EOM Mar. 3 Sold merchandise on credit to Jose Garcia, Invoice No. 855, for $19,000 (cost is $11,400) Mar. 6 Borrowed $98,000 cash from First Bank by signing a long-term note payable. Mar. 9 Purchased $22,050 of office equipment on credit from Perez Supply, invoice dated March 9, terms n/10 EOM Mar. 10 Sold merchandise on credit to Hillary Mannion, Invoice No. 856, for $15,200 (cost is $9,100) Mar. 12 Received payment from Gonzalez Co. for the March 2 sale less the discount. Mar. 13 Sent Lee Industries Check No. 416 in payment of the March 1 invoice less the discount Mar. 13 Received payment from Jose Garcia for the March 3 sale less the discount Mar. 14 Purchased $46,200 of merchandise from the Hall Co., invoice dated March 13, terms 2/10, n/30 Cashed the check and paid the employees only twice here to reduce repetitive entries.) Mar. 16 Purchased $2,200 of store supplies on credit from Walker Company, invoice dated March 16, terms n/10 EOM Mar. 19 Received a $3,310 credit memorandum from Perez Supply for office equipment received on March 9 and returned for credit Mar. 20 Received payment from Hillary Mannion for the sale of March 10 less the discount. Mar. 23 Issued Check No. 418 to Hall Co. in payment of the invoice of March 13 less the March 17 return and the discount Mar. 27 Sold merchandise on credit to Hillary Mannion, Invoice No. 857, for $33,000 (cost is $19,800) Mar. 28 Sold merchandise on credit to Jose Garcia, Invoice No. 858, for $11,400 (cost is $6,800) Cashed the check and paid the employees Mar. 31 Cash sales for the last half of the month are $31,500 (cost is $18,900)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information System Audit How To Control The Digital Disruption

Authors: Philippe Peret

1st Edition

1032136162, 978-1032136165

More Books

Students also viewed these Accounting questions

Question

=+ (e) Because it allows us to change the meaning of a method.

Answered: 1 week ago

Question

What is the typical process of friendship development?

Answered: 1 week ago