July 31-freight Delivery Expense Cash Date Account Debit Credit July 31-collection Cash Accounts Receivable-Landscapes Co. Date Account Debit Credit Aug. 3 Credit Card Expense Cash Date Account Debit Credit Aug. 10 Sales Tax Payable Cash Feedback Check My Work Journalize these transactions from the seller's perspective using the perpetual inventory system. Discounts are given on the amount owed by the buyer, except for any freight costs. July 1: Note that FOB shipping point freight is the buyer's expense. Often freight must be prepaid for the carrier to deliver. Two entries are required: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 2: The sales tax liability is incurred at the time of sale. It is debited when the seller pays the tax to the state. The amount due from the buyer is the sales amount plus the sales tax. Two entries are required: (1) for the sale on account including sales tax and (2) for the cost of the merchandise sold and inventory decrease on the seller's records July 5: Note that FOB destination point freight is the seller's expense and typically is prepaid. Two entries are required for this date: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 8: The sales tax liability is incurred at the time of sale. It is debited when the seller pays the tax to the state. The amount due from the buyer is the sales amount plus the sales tax. Remember that credit card transactions are recorded as cash sales. Two entries are required: (1) for the sale including sales tax and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 13: Remember that credit card transactions are recorded as cash sales. Two entries are required: (1) for the sale and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 14: Note that FOB shipping point freight is the buyer's expense. Often freight must be prepaid for the carrier to deliver. Two entries are required: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 15: Since paid within the discount period, the seller increases cash and credits Accounts Receivable for the amount paid. July 16: Recall that when a credit memo is issued, a liability account and an asset account are both decreased. July 18: Note that FOB shipping point freight is the buyer's expense. Often freight must be prepaid for the carrier to deliver, so credit cash for the added freight. Two entries are required: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 24: Cash is increased and accounts receivable is decreased for the amount owed less any credits issued. July 28: Cash is increased and accounts receivable is decreased for amounts owed. July 31: Since no discount is allowed, no discount is recorded. The cash paid is equal to the receivable on the seller's books. July 31: FOB shipping point freight is the buyer's cost, while FOB destination freight is the seller's expense. When the seller pays, delivery expense is increased and cash is decreased. Aug. 3: Record the service fee as an expense. Aug. 10: Since all sales taxes from customer transactions are recorded as a liability, Sales tax payable must be debited when they are paid to the state in cash. July 31-freight Delivery Expense Cash Date Account Debit Credit July 31-collection Cash Accounts Receivable-Landscapes Co. Date Account Debit Credit Aug. 3 Credit Card Expense Cash Date Account Debit Credit Aug. 10 Sales Tax Payable Cash Feedback Check My Work Journalize these transactions from the seller's perspective using the perpetual inventory system. Discounts are given on the amount owed by the buyer, except for any freight costs. July 1: Note that FOB shipping point freight is the buyer's expense. Often freight must be prepaid for the carrier to deliver. Two entries are required: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 2: The sales tax liability is incurred at the time of sale. It is debited when the seller pays the tax to the state. The amount due from the buyer is the sales amount plus the sales tax. Two entries are required: (1) for the sale on account including sales tax and (2) for the cost of the merchandise sold and inventory decrease on the seller's records July 5: Note that FOB destination point freight is the seller's expense and typically is prepaid. Two entries are required for this date: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 8: The sales tax liability is incurred at the time of sale. It is debited when the seller pays the tax to the state. The amount due from the buyer is the sales amount plus the sales tax. Remember that credit card transactions are recorded as cash sales. Two entries are required: (1) for the sale including sales tax and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 13: Remember that credit card transactions are recorded as cash sales. Two entries are required: (1) for the sale and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 14: Note that FOB shipping point freight is the buyer's expense. Often freight must be prepaid for the carrier to deliver. Two entries are required: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 15: Since paid within the discount period, the seller increases cash and credits Accounts Receivable for the amount paid. July 16: Recall that when a credit memo is issued, a liability account and an asset account are both decreased. July 18: Note that FOB shipping point freight is the buyer's expense. Often freight must be prepaid for the carrier to deliver, so credit cash for the added freight. Two entries are required: (1) for the sale on account and (2) for the cost of the merchandise sold and inventory decrease on the seller's records. July 24: Cash is increased and accounts receivable is decreased for the amount owed less any credits issued. July 28: Cash is increased and accounts receivable is decreased for amounts owed. July 31: Since no discount is allowed, no discount is recorded. The cash paid is equal to the receivable on the seller's books. July 31: FOB shipping point freight is the buyer's cost, while FOB destination freight is the seller's expense. When the seller pays, delivery expense is increased and cash is decreased. Aug. 3: Record the service fee as an expense. Aug. 10: Since all sales taxes from customer transactions are recorded as a liability, Sales tax payable must be debited when they are paid to the state in cash