Instructions

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.

Journalize the entries to record the transactions of Amsterdam Supply Co.

Refer to the Chart of Accounts for exact wording of account titles.

Mar 2: Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300.

Mar 3: Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods soldwas $7,000.

Mar 4: Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200.

Mar 5: Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400.

Mar 12: Received check for amount due from Equinox Co. for sale on March 2.

Mar 14: Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350.

Mar 16: Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000.

Mar 18: Issued credit memofor $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.

Mar19: Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000.

Mar 26: Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.

Mar 28: Received check for amount due from Vista Co. for sale of March 19.

Mar 31: Received check for amount due from Empire Co. for sale of March 4.

Mar 31:Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.

Apr 3: Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.

Apr 15: Paid $6,544 to state sales tax division for taxes owed on sales.

Refer to the Chart of Accounts for exact wording of account titles.

ASSETS

110Cash

121Accounts Receivable-Empire Co.

122Accounts Receivable-Equinox Co.

123Accounts Receivable-Targhee Co

124Accounts Receivable-Vista Co.

125Notes Receivable130Inventory

131Estimated Returns Inventory

140Office Supplies

141Store Supplies

142Prepaid Insurance

180Land

192Store Equipment

193Accumulated Depreciation-Store Equipment

194Office Equipment195Accumulated Depreciation-Office Equipment

LIABILITIES

210Accounts Payable

216Salaries Payable

218Sales Tax Payable

219Customer Refunds Payable

221Notes Payable

EQUITY

310Common Stock

311Retained Earnings

312Dividends

313Income Summary

REVENUE

410Sales

610Interest Revenue

EXPENSES

510Cost of Goods Sold

521Delivery Expense

522Advertising Expense

524Depreciation Expense-Store Equipment

525Depreciation Expense-Office Equipment

526Salaries Expense

531Rent Expense

533Insurance Expense

534Store Supplies Expense

535Office Supplies Expense

536Credit Card Expense

539Miscellaneous Expense

710Interest Expense