Instructions:

Record the October transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal.

Nights Watch Security Inc. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Nights Watch Security Inc. are indicated in the working papers. Below are a series of transactions for Nights Watch Security Inc. for the month of October. Credit sales terms are 1/10, n/25. The cost of all merchandise sold was 28% of the sales price. Round all numbers to whole dollars.

Oct. 3 Purchase merchandise from L. Varys 1/10, n/30 for $51,000 and T. Greyjoy for $22,500, terms 2/10. n/30.

5 Receive checks from S. Stark $16,400 and J. Snow $16,700 after the discount period has lapsed.

6 Receive $500 worth of office supplies on account.

7 Sell merchandise on account to D. Targaryen $12,000, invoice no. 125, and to T. Lannister $15,200, invoice no. 126.

8 Freight on merchandise purchased from T. Greyjoy for $240 paid for with cash (FOB Shipping point)

9 Send checks to T. Greyjoy and D. Seaworth for balances due (terms for both were 2/10, n30), and to S. Tarly for balance due (terms were n/30).

9 Summary daily cash sales total $35,650.

10 Withdrawal of $15,500 cash by B. Tarth for personal use.

11 Sell merchandise on account to J. Snow $16,600, invoice no. 127, and to S. Stark $12,900, invoice no. 128.

12 Pay rent in cash of $18,000 for October, November and December. (Hint: this is a prepaid account)

13 Receive payment in full from T. Lannister less cash discount and J. Mormont who paid after the cash discount period was up.

15 Return $5,000 of merchandise to T. Greyjoy and receive credit. Post all entries to the subsidiary ledgers.

16 Purchase merchandise from L. Varys $18,000, terms 1/10, n/30; D. Seaworth $14,200, terms 2/10, n/30; and S. Tarly $23,500, terms 1/10, n/30.

17 Pay $2,400 cash for office supplies.

18 Summary daily cash sales total $40,155.

20 Issue credit of $5,200 to D. Targaryen for merchandise returned

21 Issue $61,000 note, maturing in 90 days, to vendor S. Clegane in payment of the account balance due.

21 Receive payment in full from S. Stark less cash discount.

22 Sell merchandise on account to D. Targaryen $22,700, invoice no. 129, and to J. Snow $34,200, invoice no. 130. Post all entries to the subsidiary ledgers.

23 Send checks to S. Tarly and D. Seaworth in full payment less cash discounts.

25 Sell merchandise on account to J. Mormont $50,250, invoice no. 131, and to T. Lannister $36,100, invoice no. 132.

27 Purchase merchandise from L. Varys $14,500, terms 1/10, n/30; T. Greyjoy $12,400, terms 2/10, n/30; and S. Tarly $15,400, terms n/30. Post all entries to the subsidiary ledgers.

28 Pay $500 for the office supplies purchased on October 6th.

31 Summary daily cash sales total $26,500.

31 Pay salaries and wages of $12,750.

Name Section Date Nights Watch Security Inc (a) \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Sales Journal } \\ \hline Date & \begin{tabular}{l} Account \\ Debited \end{tabular} & \begin{tabular}{c} Invoice \\ No. \end{tabular} & Ref. & \begin{tabular}{l} Accounts \\ Receiv. Dr. \\ Sales Cr. \end{tabular} & \begin{tabular}{l} COGS Dr. \\ Inventory Cr. \end{tabular} \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Purchases Journal } \\ \hline Date & \begin{tabular}{l} Account \\ Credited \\ \end{tabular} & Terms & Ref. & \begin{tabular}{l} Inventory (Dr.) \\ Acc. Pay (Cr.) \end{tabular} \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} 1 of 17 (a) (Continued) (a) (Continued) 4 of 17 (e) (Continued) a2 and an and in