Answered step by step
Verified Expert Solution
Question
1 Approved Answer
.................. Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the
..................
Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $82,000, trade discount 20%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $930 added to the invoice. 5. Purchased merchandise on account from Kester Co., $43,050, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $14,460, terms n/15. The cost of the goods sold was $8,670. 7. Returned merchandise with an invoice amount of $16,000 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $236,900. The cost of the goods sold was $127,080. 22. Sold merchandise on account to Tabor Co., $62,100, terms 2/10, n/30. The cost of the goods sold was $33,560. 23. Sold merchandise for cash, $35,080. The cost of the goods sold was $24,620. 28. Paid Parsley Co. a cash refund of $6,210 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,580. 31. Paid MasterCard service fee of $3,290. Required: : Journalize the transactions. If an amount box does not require an entry, leave it blank. Inventory July 3 9,447 x 62,650 X Accounts Payable-Hamling Co. 62,650 9,447 July 5 Inventory 33,450 X 33,450 33,450 X x Accounts Payable-Kester Co. July 6 Accounts Receivable-Parsley Co. Sales Cost of Goods Sold July 6 Inventory Accounting numeric field July 7 Accounts Payable-Kester Co. Inventory July 13 Accounts Payable-Hamling Co. Cash Accounts Payable-Kester Co. July 15 Cash July 21 Cash v Accounts Receivable-Parsley Co. July 21 Cash Sales July 21 Cost of Goods Sold Inventory July 22. Accounts Receivable-Tabor Co. Sales II II II II II II II I II II II II II II II I July 22 Cost of Goods Sold Inventory July 23 Cash Sales Cost of Goods Sold Inventory Customers Refunds Payable July 28 July 28 Inventory Estimated Returns Inventory July 31 Credit Card Expense CashStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started