Problem 7-04A Selected accounts from the chart of accounts of Oriole Company 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, Oriole completed the following transactions. Jan. 3 Purchased merchandise on account from Gallagher Co. $9,900. 4 Purchased supplies for cash $80. 4 Sold merchandise on account to Wheeler $6,370, invoice no. 371, terms 1/10, n/30. 5 Returned $600 worth of damaged goods purchased on account from Gallagher Co. on January 3. 6 Made cash sales for the week totaling $3,210. 8 Purchased merchandise on account from Phegley Co. $4,800. 9 Sold merchandise on account to Linton Corp. $7,500, invoice no. 372, terms 1/10, 1/30. 11 Purchased merchandise on account from Cora Co. $3,670. 13 Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $6,700. 15 Received payment from Linton Corp. for invoice no. 372. 15 Paid semi-monthly salaries of $13,800 to employees. 17 Received payment from Wheeler for invoice no. 371. 17 Sold merchandise on account to Delaney Co. $2.930, invoice no. 373, terms 1/10, 1/30. DAARAAR AS a CALCULATOR FULL SCREEN PRINTER VERSION ES dy 19 Purchased equipment on account from Dozier Corp. $5,560. 20 Cash sales for the week totaled $3,800. 20 Paid in full Phegley Co, on accountless a 2% discount 23 Purchased merchandise on account from Gallagher Co. $7,420. 24 Purchased merchandise on account from Atchison Corp. $4,510. 27 Made cash sales for the week totaling $4,710. 30 Received payment from Delaney Co, for invoice no. 373. 31 Paid semi-monthly salaries of $13,960 to employees 31 Sold merchandise on account to Wheeler 59,330, Invoice no. 374, terms 1/10, 1/30 Mercer Company uses the following Journals 1. Sales journal 2. Single-column purchases journal. 1. Cash receipts journal 4. Cash payments journal 5. General Journal Using the selected accounts provided Record and Post the January transactions in the appropriate journat roted. Font and cross-foot all specal journals. Record entries in the ander displayed in the problem statement Cash Receipts Journal Date Account Credited Ref. Cash Dr. Sales Discounts Dr. Accounts Receivable Cr. Sales Revenue Cr. Other Accounts Cr. OR1 Cost of Goods Sold Dr. Inventory Cr. Jan 6 3.210 3.210 1.926 Jan 13 6.700 6.700 4,020 Jan. 15 Linton Corp > (101) (414) (212) (401) Cash Payments Journal Other Accounts Dr. Date Account Debited Ref. Accounts Payable Dr. CP1 Cash Cr. Inventory Cr. Jan. 4 Supplies 126 80 80 Jan. 13 Gallagher Co. Jan. 15 Salaries and Wages Expense 726 13,800 13,800 Jan. 20 Phegley Co. Jan. 31 Salaries and Wages Expense 726 13,980 I 13,980 CX) (201) (120) (101)
