P7.4A (LO 2,3) Selected accounts from the chart of accounts of Mercer Company are shown below. Journalize transactions in special Journals 101 112 Cash Accounts Receivable 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 401 Sales Revenue 412 Sales Returns and Allowances 414 Sales Discounts 505 Cost of Goods Sold 726 Salaries and Wages Expense The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions. Jan. 3 Purchased merchandise on account from Gallagher Co. $9,000 4 Purchased supplies for cash $80. 4 Sold merchandise on account to Wheeler $5,250, invoice no. 371, terms 1/10, n/30 5 Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3. 6 Made cash sales for the week totaling $3,150 8 Purchased merchandise on account from Phegley Co. $4.500. 9 11 13 Sold merchandise on account to Linton Corp. $5,400, invoice no. 372, termi1/10, 1/30 Purchased merchandise on account from Cora Co. $3,700, Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $6,260. 15 Received payment from Linton Corp for invoice no. 372 15 Paid semi-monthly salaries of $14.300 to employees Received payment from Wheeler for invoice no. 371. 17 17 Sold merchandise on account to Delaney Co $1,200, invoice no. 373, terms 1/10, 1/30 19 Purchased equipment on account from Dorier Corp. $5.500 Purchased merchandise on account from Gallagher Co. $7,800 24 Purchased merchandise on account from Alchison Corp. $5.100 20 Cash sales for the week totaled $3,200 20 Paid in full Phegley Co. on account less a 2% discount 23 27 Made cash sales for the week totaling $4.230 31 Paid semi-monthly salaries of 513,200 to employees. 31 30 Received payment from Delaney Co. for invoice no. 373 Sold merchandise on account to Wheeler 59.330, invoice no. 374, terms 1/10, n/30 Mercer Company 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 C Sales Revenue Cr. Other Accounts Cr and Cost of Goods Sold Dr./Inventory Cr GLS