P7.4 (LO 2, 3) Selected accounts from the chart of accounts of Meng Enterprises are shown below.

101 Cash	401 Sales Revenue	112 Accounts Receivable	412 Sales Returns and Allowances	120 Inventory
414 Sales Discounts	126 Supplies	505 Cost of Goods Sold	157 Equipment	726 Salaries and Wages Expense
201 Accounts Payable

The cost of all merchandise sold was 60% of the sales price. During January, Meng completed the following transactions (amounts in thousands).

Jan. 3	Purchased merchandise on account from Gum Co. 9,000.
4	Purchased supplies for cash 80.
4	Sold merchandise on account to Wei 5,250, invoice no. 371, terms 1/10, n/30.
5	Returned 300 worth of damaged goods purchased on account from Gum Co. on January 3.
6	Made cash sales for the week totaling 3,150.
8	Purchased merchandise on account from Pang Co. 4,500.
9	Sold merchandise on account to Loeng Corp. 5,400, invoice no. 372, terms 1/10, n/30.
11	Purchased merchandise on account from Che Co. 3,700.
13	Paid in full Gum Co. on account less a 2% discount.
13	Made cash sales for the week totaling 6,260.
15	Received payment from Loeng Corp. for invoice no. 372.
15	Paid semi-monthly salaries of 14,300 to employees.
17	Received payment from Wei for invoice no. 371.
17	Sold merchandise on account to Dyun Co. 1,200, invoice no. 373, terms 1/10, n/30.
19	Purchased equipment on account from Ziu Corp. 5,500.
20	Cash sales for the week totaled 3,200.
20	Paid in full Pang Co. on account less a 2% discount.
23	Purchased merchandise on account from Gum Co. 7,800.
24	Purchased merchandise on account from Yap Corp. 5,100.
27	Made cash sales for the week totaling 4,230.
30	Received payment from Dyun Co. for invoice no. 373.
31	Paid semi-monthly salaries of 13,200 to employees.
31	Sold merchandise on account to Wei 9,330, invoice no. 374, terms 1/10, n/30.

Meng uses the following journals.

1. Sales journal.

2. Single-column purchases journal.

3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.

4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr.

5. General journal.

Instructions

Using the selected accounts provided:

a. Record the January transactions in the appropriate journal noted.

b. Post to ledger account (general and ledger accounts.)

c. Prove the ledgers