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 $88,000, trade discount 30%, terms FOB shipping point, 2/10, n/3 prepaid freight of $900 added to the involce. 5. Purchased merchandise on account from Kester Co., 550,000, terms FOB destination, 2/10, 1/30. 6. Sold merchandise on account to Parsley Co., $16,160, terms /15. The cost of the goods sold was $10,000. 7. Returned merchandise with an involce 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 on MasterCard, $253,670. The cost of the goods sold was $152,500. 22. Sold merchandise on account to Tabor Co., 553,500, terms 2/10, 1/30. The cost of the goods sold was $31,950. 23. Sold merchandise for cash, $38,930. The cost of the goods sold was $23,660. 28. Pald Parsley Co, a cash refund of $6,420 for returned merchandise from sale of July 6. The cost of the returned merchandise was : 31. Paid MasterCard service fee of $3,440. Required: Joumalize the transactions. If an amount box does not require an entry, leave it blank. Inventory Journalize the transactions. If an amount box does not require an entry, leave it blank. July 3 Inventory Accounts Payable-Hamling Co. July 5 Inventory Accounts Payable-Kester Co. July 6 Accounts Receivable-Parsley Co. V Sales I 11 11 11 DIO 10 10 10 10 10 11 July 6 Cost of Goods Sold Inventory July 7 Accounts Payable-Kester Co. V Inventory July 13 Accounts Payable-Hamling Co. Cash July 15 Accounts Payable-Kester Co. Cash July 21 Cash Accounts Receivable-Parsley Co. July 21 Cash Sales I II II II IU DO II II DI II II II II July 21 Cost of Goods Sold Inventory July 22 Accounts Receivable-Tabor Co. Sales July 22 Cost of Goods Sold Inventory July 23 Cash July 22 Accounts Receivable-Tabor Co. Sales July 22 Cost of Goods Sold Inventory July 23 Cash Sales II II II II II II II II II II II II I July 23 Cost of Goods Sold Inventory July 28 Customers Refunds Payable v Cash July 28 Inventory Estimated Returns Inventory July 31 Credit Card Expense L July 28 Customers Refunds Payable Cash July 28 Inventory II II III II 11.00 Estimated Returns Inventory July 31 Credit Card Expense Cash I Feedback
