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:

Date	Transaction
July 3.	Purchased merchandise on account from Hamling Co., list price $77,000, trade discount 30%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $880 added to the invoice.
5.	Purchased merchandise on account from Kester Co., $45,900, terms FOB destination, 2/10, n/30.
6.	Sold merchandise on account to Parsley Co., $14,050, terms n/15. The cost of the goods sold was $9,990.
7.	Returned merchandise with an invoice amount of $13,300 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 with a list price of $237,040 to customers who used MasterCard and who redeemed $8,800 of point-of-sale coupons. The cost of the goods sold was $133,410.
22.	Sold merchandise on account to Tabor Co., $57,700, terms n/30. The cost of the goods sold was $32,040.
23.	Sold merchandise for cash, $35,810. The cost of the goods sold was $24,050.
28.	Paid Parsley Co. a cash refund of $5,980 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,560.
31.	Paid MasterCard service fee of $3,450.
31.	During July, printed a coupon with each customers sales receipt for $1 off the customers next purchase of over $10. The coupons may be redeemed during August. Of the total of 31,000 coupons printed, it is estimated that 60% will be redeemed.

Required:

Question Content Area

1. Journalize the transactions. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
July 3	Accounts Payable-Hamling Co.Cost of Goods SoldDelivery ExpenseInventorySales Discounts	- Select -	- Select -
	Accounts Payable-Hamling Co.Cost of Goods SoldDelivery ExpenseInventorySales Discounts	- Select -	- Select -
July 5	Accounts ReceivableCashInventorySalesSales Discounts	- Select -	- Select -
	Accounts Payable-Kester Co.Accounts Receivable-Kester Co.Cost of Goods SoldDelivery ExpenseInventory	- Select -	- Select -
July 6	Accounts Payable-Kester Co.Accounts Receivable-Parsley Co.Cost of Goods SoldInventorySales	- Select -	- Select -
	Accounts PayableAccounts ReceivableCost of Goods SoldInventorySales	- Select -	- Select -
July 6	Accounts Receivable-Parsley Co.Cost of Goods SoldDelivery ExpenseInventorySales Discounts	- Select -	- Select -
	Accounts Receivable-Parsley Co.Cost of Goods SoldDelivery ExpenseInventorySales Discounts	- Select -	- Select -
July 7	Accounts Payable-Kester Co.CashCost of Goods SoldInventorySales	- Select -	- Select -
	Accounts Payable-Kester Co.CashCost of Goods SoldInventorySales	- Select -	- Select -
July 13	Accounts Payable-Hamling Co.CashDelivery ExpenseSalesSales Discounts	- Select -	- Select -
	Accounts Payable-Hamling Co.CashDelivery ExpenseSalesSales Discounts	- Select -	- Select -
	Accounts Payable-Hamling Co.Accounts Receivable-Hamling Co.Cost of Goods SoldInventorySales	- Select -	- Select -
July 15	Accounts Payable-Kester Co.Accounts Receivable-Kester Co.CashCost of Goods SoldInventory	- Select -	- Select -
	Accounts Payable-Kester Co.Accounts Receivable-Kester Co.CashCost of Goods SoldSales	- Select -	- Select -
	Accounts Payable-Kester Co.Accounts Receivable-Kester Co.Cost of Goods SoldInventorySales	- Select -	- Select -
July 21	Accounts Receivable-Parsley Co.CashDelivery ExpenseInventorySales	- Select -	- Select -
	Accounts Receivable-Parsley Co.Cost of Goods SoldDelivery ExpenseInventorySales Discounts	- Select -	- Select -
July 21	Accounts ReceivableCashInventorySalesSales Discounts	- Select -	- Select -
	Accounts ReceivableCashSalesSales DiscountsSales Returns and Allowances	- Select -	- Select -
July 21	Accounts ReceivableCost of Goods SoldInventorySales DiscountsSales Returns and Allowances	- Select -	- Select -
	Accounts ReceivableCashCost of Goods SoldInventorySales Discounts	- Select -	- Select -
July 22	Accounts Receivable-Tabor Co.CashCost of Goods SoldInventorySales Discounts	- Select -	- Select -
	Accounts Receivable-Parsley Co.Cost of Goods SoldSalesSales DiscountsSales Returns and Allowances	- Select -	- Select -
July 22	Accounts Receivable-Parsley Co.Cost of Goods SoldInventorySales DiscountsSales Returns and Allowances	- Select -	- Select -
	Accounts Receivable-Parsley Co.Cost of Goods SoldInventorySales DiscountsSales Returns and Allowances	- Select -	- Select -
July 23	Accounts Payable-Hamling Co.CashInventorySalesSales Returns and Allowances	- Select -	- Select -
	Accounts Payable-Hamling Co.CashInventorySalesSales Returns and Allowances	- Select -	- Select -
July 23	Accounts Receivable-Parsley Co.CashCost of Goods SoldInventorySales Discounts	- Select -	- Select -
	Accounts Receivable-Parsley Co.CashCost of Goods SoldInventorySales Discounts	- Select -	- Select -
July 28	Accounts Payable-Kester Co.CashCustomers Refunds PayableDelivery ExpenseSales Discounts	- Select -	- Select -
	Accounts Receivable-Tabor Co.CashCost of Goods SoldInventorySales Discounts	- Select -	- Select -
July 28	Accounts PayableCashCost of Goods SoldInventorySales Discounts	- Select -	- Select -
	Accounts PayableCashEstimated Returns InventoryInventorySales Discounts	- Select -	- Select -
July 31	Accounts ReceivableCredit Card ExpenseInventorySalesSales Discounts	- Select -	- Select -
	CashCredit Card ExpenseInventorySalesSales Discounts	- Select -	- Select -
July 31	Accounts ReceivableCredit Card ExpenseEstimated Coupons PayableSalesSales Discounts	- Select -	- Select -
	Accounts ReceivableCredit Card ExpenseEstimated Coupons PayableSalesSales Discounts	- Select -	- Select -

Question Content Area

2. Assume that as of August 31, 16,800 of the $1-off coupons issued during July had been redeemed by customers. Journalize the entry for the remaining unredeemed coupons. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Aug. 31	Accounts Payable-Hamling Co.Cost of Goods SoldEstimated Coupons PayableInventorySales	- Select -	- Select -
	Accounts Payable-Hamling Co.Cost of Goods SoldEstimated Coupons PayableInventorySales	- Select -	- Select -