Sales-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:

Mar. 2.

Sold merchandise on account to Equinox Co., $20,300, terms FOB destination, 1/10, n/30. The cost of the goods sold was $12,590.

3.

Sold merchandise for $10,200 plus 6% sales tax to retail cash customers. The cost of the goods sold was $6,510.

4.

Sold merchandise on account to Empire Co., $54,600, terms FOB shipping point, n/eom. TThe cost of the goods sold was $34,200.

5.

Sold merchandise for $32,950 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $20,720.

12.

Received check for amount due from Equinox Co. for sale on March 2.

14.

Sold merchandise to customers who used American Express cards, $14,020. The cost of the goods sold was $7,770.

16.

Sold merchandise on account to Targhee Co., $25,700, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $15,600.

18.

Issued credit memo for $5,000 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,800.

19.

Sold merchandise on account to Vista Co., $8,700, terms FOB shipping point, 2/10, n/30. Paid $70 for freight and added it to the invoice. The cost of the goods sold was $4,780.

26.

Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.

28.

Received check for amount due from Vista Co. for sale of March 19.

31.

Received check for amount due from Empire Co. for sale of March 4.

31.

Paid Fleetwood Delivery Service $5,730 for merchandise delivered during March to customers under shipping terms of FOB destination.

Apr. 3.

Paid City Bank $830 for service fees for handling MasterCard and American Express sales during March.

15.

Paid $6,068 to state sales tax division for taxes owed on sales.

Required:

Journalize the entries to record the transactions of Amsterdam Supply Co. For a compound transaction, if no entry is required, leave the entry box blank.

Date	Account	Debit	Credit
Mar. 2-sale	Accounts Receivable-Equinox Co.
	Sales

Date	Account	Debit	Credit
Mar. 2-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 3-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
Mar. 3-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 4-sale	Accounts Receivable-Empire Co.
	Sales

Date	Account	Debit	Credit
Mar. 4-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 5-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
Mar. 5-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 12	Cash
	Accounts Receivable-Equinox Co.

Date	Account	Debit	Credit
Mar. 14-sale	Cash
	Sales

Date	Account	Debit	Credit
Mar. 14-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 16-sale	Accounts Receivable-Targhee Co.
	Sales

Date	Account	Debit	Credit
Mar. 16-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 18-return	Customer Refunds Payable
	Accounts Receivable-Targhee Co.

Date	Account	Debit	Credit
Mar. 18-cost	Inventory
	Estimated Returns Inventory

Date	Account	Debit	Credit
Mar. 19-sale	Accounts Receivable-Vista Co.
	Sales

Date	Account	Debit	Credit
Mar. 19-freight	Accounts Receivable-Vista Co.
	Cash

Date	Account	Debit	Credit
Mar. 19-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 26	Cash
	Accounts Receivable-Targhee Co.

Date	Account	Debit	Credit
Mar. 28	Cash
	Accounts Receivable-Vista Co.

Date	Account	Debit	Credit
Mar. 31-collection	Cash
	Accounts Receivable-Empire Co.

Date	Account	Debit	Credit
Mar. 31-freight	Delivery Expense
	Cash

Date	Account	Debit	Credit
Apr. 3	Credit Card Expense
	Cash

Date	Account	Debit	Credit
Apr. 15	Sales Tax Payable
	Cash