Posting journal entry

160 Chapter 6 Accounting for Merchandising Businesses Illustrative Problem The following transactions were completed by Montrose Company during May of the current year. Montrose Compan y uses a perpetual inventory system. Purchased merchandise on account from Floyd Co., $4,000, terms FOB ship- ping point, 2/10, n/30, with prepaid freight of $120 added to the invoice. Purchased merchandise on account from Kramer Co., $8,500, terms FOB May 3. May 5. destination, 1/10, n/30. 6. Sold merchandise on account to C.F.Howell Co., list price $4,000, trade dis- count 30%, terms 2/10, n/30. The cost of the merchandise sold was si,125. 8. Purchased office supplies for cash, $150 10. Returned merchandise purchased on May 5 from Kramer Co., $1,300. 13. Paid Floyd Co. on account for purchase of May 3, less discount. 14. 15. Purchased merchandise for cash, $10,500. Paid Kramer Co. on account for purchase of May 5, less return of May 10 16. Received cash on account from sale of May 6 to C. F. Howell Co., less 19. Sold merchandise on MasterCard credit cards, $2,450. The cost of the mer- 22. Sold merchandise on account to Comer Co., $3,480, terms 2/10, n/30. The 24. Sold merchandise for cash, $4,350. The cost of the merchandise sold was 25. Received merchandise returned by Comer Co. from sale on May 22, S1A80 31. Paid a service processing fee of $140 for MasterCard sales and discount. discount. chandise sold was $980 cost of the merchandise sold was $1,400 $1,750. The cost of the returned merchandise was $600. 2. 1. If