Question
Sales-Related Transactions using Perpetual Inventory System The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and
Sales-Related Transactions using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
July 1. Sold merchandise on account to Landscapes Co., $33,450, terms FOB shipping point, n/eom. The cost of the goods sold was $20,000. 2. Sold merchandise for $86,000 plus 8% sales tax to retail cash customers. The cost of the goods sold was $51,600. 5. Sold merchandise on account to Peacock Company, $17,500, terms FOB destination, 1/10, n/30. The cost of the goods sold was $10,000. 8. Sold merchandise for $112,000 plus 8% sales tax to retail customers who used VISA cards. The cost of the goods sold was $67,200. 13. Sold merchandise to customers who used MasterCard cards, $96,000. The cost of the goods sold was $57,600. 14. Sold merchandise on account to Loeb Co., $16,000, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $9,000. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for $3,000 to Loeb Co. for merchandise returned from the sale on July 14. The cost of the merchandise returned was $1,800. 18. Sold merchandise on account to Jennings Company, $11,350, terms FOB shipping point, 2/10, n/30. Paid $475 for freight and added it to the invoice. The cost of the goods sold was $6,800. 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. 28. Received check for amount due from Jennings Company for sale of July 18. 31. Paid Black Lab Delivery Service $8,550 for merchandise delivered during July to customers under shipping terms of FOB destination. 31. Received check for amount due from Landscapes Co. for sale of July 1. Aug. 3. Paid Hays Federal Bank $3,770 for service fees for handling MasterCard and VISA sales during July. 10. Paid $41,260 to state sales tax division for taxes owed on sales.
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if an amount box does not require an entry, leave the box blank.
Date Account Debit Credit July 1-sale
Date Account Debit Credit July 1-cost
Date Account Debit Credit July 2-sale
Date Account Debit Credit July 2-cost
Date Account Debit Credit July 5-sale
Date Account Debit Credit July 5-cost
Date Account Debit Credit July 8-sale
Date Account Debit Credit July 8-cost
Date Account Debit Credit July 13-sale
Date Account Debit Credit July 13-cost
Date Account Debit Credit July 14-sale
Date Account Debit Credit July 14-cost
Date Account Debit Credit July 15
Date Account Debit Credit July 16-return
Date Account Debit Credit July 16-cost
Date Account Debit Credit July 18-sale
Date Account Debit Credit July 18-freight
Date Account Debit Credit July 18-cost
Date Account Debit Credit July 24
Date Account Debit Credit July 28
Date Account Debit Credit July 31-freight
Date Account Debit Credit July 31-collection
Date Account Debit Credit Aug. 3
Date Account Debit Credit Aug. 10
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