Problem 7-4A Selected accounts from the chart of accounts of Mercer 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
Jan. 3 Purchased merchandise on account from Gallagher Co. $10,500. 4 Purchased supplies for cash $80. 4 Sold merchandise on account to Wheeler $5,670, 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 $3,800. 8 Purchased merchandise on account from Phegley Co. $5,000. 9 Sold merchandise on account to Linton Corp. $5,300, invoice no. 372, terms 1/10, n/30. 11 Purchased merchandise on account from Cora Co. $3,650. 13 Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $5,970. 15 Received payment from Linton Corp. for invoice no. 372. 15 Paid semi-monthly salaries of $13,000 to employees. 17 Received payment from Wheeler for invoice no. 371. 17 Sold merchandise on account to Delaney Co. $2,880, invoice no. 373, terms 1/10, n/30. 19 Purchased equipment on account from Dozier Corp. $5,770. 20 Cash sales for the week totaled $3,740. 20 Paid in full Phegley Co. on account less a 2% discount. 23 Purchased merchandise on account from Gallagher Co. $7,030. 24 Purchased merchandise on account from Atchison Corp. $5,440. 27 Made cash sales for the week totaling $4,620. 30 Received payment from Delaney Co. for invoice no. 373. 31 Paid semi-monthly salaries of $13,190 to employees. 31 Sold merchandise on account to Wheeler $9,310, 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. 4. Cash payments journal. 5. General journal. Using the selected accounts provided: Record and Post the January transactions in the appropriate journal noted. Foot and cross-foot all special journals. (Record entries in the order displayed in the problem statement.) Sales Journal S1 Date Account Debited Accounts Receivable Dr. Invoice No. Ref. Sales Revenue Cr. Cost of Goods Sold Dr. Inventory Cr. (112)(401) (505)(120) Purchases Journal P1 Date Account Credited Inventory Dr. Ref. Accounts Payable Cr. - v (120)(201) General Journal Account Titles and Explanation Date Debit Credit Cash Receipts Journal CR1 Date Account Credited Ref. Cash Dr. Sales Discounts Dr. Accounts Receivable Cr. Sales Revenue Cr. Other Accounts Cr. " Inventory Cr. (101) (414) (112) (401) (505)(120) CP1 Cash Payments Journal Other Accounts Dr. Date Account Debited Ref. Accounts Payable Dr. Inventory Cr. Cash Cr. (201) (120) (101)
