Journalize the following transactions for Natural Landscape company for the month of July.

Assume a perpetual inventory and use the gross method when applying the credit terms discount on invoices.

In this assignment all purchase transactions are first and the sales transactions are next followed by an adjusting entry.

During July the following purchase transactions occurred:

8-Jul

Purchased $5,400 of merchandise from The Rock Shop.

Terms 3/15, n/45, FOB shipping point. The Rock Shop prepaid $350 in shipping and the amount was added it to their invoice.

10-Jul

Purchased $375 of supplies on account from The Office Barn.

Terms 3/15, n/30, FOB destination.

17-Jul

A return was recorded for $600 of the merchandise purchased on July 8 and the customer received credit.

19-Jul

Paid for the supplies purchased on July 10.

22-Jul

Paid the Rock Shop the amount due from the July 8 purchase in full.

During July the following sales transactions occurred:

14-Jul

Sold $950 (cost $250) of merchandise (inventory) on account to XYZ Co.

Terms 3/15, n/45, FOB destination

15-Jul

Paid $25 freight charges to deliver goods to XYZ Co.

18-Jul

Sold $900 (cost $350) of merchandise to cash customers

24-Jul

XYZ Co. returned $175 (cost $100) of merchandise from the July 14 sale

28-Jul

Received payment in full from XYZ Co. for the July 14 sale.

Record this adjusting entry.

31-Jan

Natural Landscape inventory account shows a balance of $40,000, but the physical counts shows only $39,500 of inventory exists.

Record the adjusting entry.

1

Journalize the transactions (explanations are not necessary).

Date

Accounts

Post Ref.

Debit

Credit

Totals