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Posted on Jul 27, 2024

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

image text in transcribed 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., $18,800, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,090. 3. Sold merchandise for $11,000 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,210. 4. Sold merchandise on account to Empire Co., $59,340, terms FOB shipping point, n/eom. TThe cost of the goods sold was $34,350. 5. Sold merchandise for $29,450 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $20,050. 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 $8,160. 16. Sold merchandise on account to Targhee Co., $27,400, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $15,390. 18. Issued credit memo for $5,300 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,640. 19. Sold merchandise on account to Vista Co., $8,900, terms FOB shipping point, 2/10, n/30. Paid $55 for freight and added it to the invoice. The cost of the goods sold was $4,890. 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 $5,610 for merchandise delivered during March to customers under shipping terms of FOB destination. Apr. 3. Paid City Bank $980 for service fees for handling MasterCard and American Express sales during March. 15. Paid $6,108 to state sales tax division for taxes owed on sales

Date Account Debit Credit Mar. Accounts Receivable-Equinox Co. 18,800 x 2-sale Sales 1,880 x Date Account Debit Credit Mar. Cost of Goods Sold 13,090 cost Inventory 13,090 Date Account Debit Credit Mar. 3-sale Cash 11,660 Sales 11,000 Sales Tax Payable 660 Date Account Debit Credit Mar. 3- Cost of Goods Sold 7,210 cost Inventory 7,210 Date Account Debit Credit edit Mar. 4-sale Accounts Receivable-Empire Co. 59,340 Sales 59,340 Date Account Debit Credit Mar. Cost of Goods Sold 34,350 4- cost Inventory 34,350 Date Account Debit Credit Mar. 5-sale Cash 31,217 7 Sales 29,450 Sales Tax Payable 1,767 Date Account Debit Credit Mar. 5- cost Cost of Goods Sold 20,050 Inventory ~ 20,050 Date Account Debit Credit Mar. Cash 18,612 12 - Accounts Receivable-Equinox Co. 18,612 Date Account Debit Credit Mar. 14- Cash 14,020 sale Sales 14,020 Date Account Debit Credit Mar. Cost of Goods Sold 8,160 14- cost Inventory 8,160 Date Account Debit Credit Mar. 16- Accounts Receivable-Targhee Co. V 27,400 sale Sales 15,390 X Date Account Debit Credit Mar. 16- cost Cost of Goods Sold 15,390 Inventory 15,390 Date Account Debit Credit Mar. 18- return Customer Refunds Payable 5,300 x Accounts Receivable-Targhee Co. 2,640 x Date Account Debit Credit Mar. Inventory 2,640 cost Estimated Returns Inventory 2,640 Date Account Debit Credit Mar. 19- Accounts Receivable-Vista Co. 8,955 sale Sales 8,955 x Date Account Debit Credit Mar. 19- freight Accounts Receivable-Vista Co. 8,955 Cash 8,955 x Date Account Debit Credit Mar. 19. Cost of Goods Sold 4,890 cost Inventory 4,890 Date Account Debit Credit Mar. 26 Cash 12,750 X Accounts Receivable-Targhee Co. Date Account Debit Credit Mar. Cas h 8,845 28 Accounts Receivable-Vista Co. 8,955 Date Account Debit Credit Mar. 31- collection Cash 59,340 Accounts Receivable-Empire Co. 59,340 Date Account Debit Credit Mar. 31- Delivery Expense 5,610 freight Cash 5,610 Date Account Credit Debit 980 Apr. 3 Credit Card Expense Cash 980 Date Account Debit Credit Apr. Sales Tax Payable 6,108 15 Cash 6,108 Feedback 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., $18,800, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,090. 3. Sold merchandise for $11,000 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,210. 4. Sold merchandise on account to Empire Co., $59,340, terms FOB shipping point, n/eom. TThe cost of the goods sold was $34,350. 5. Sold merchandise for $29,450 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $20,050. 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 $8,160. 16. Sold merchandise on account to Targhee Co., $27,400, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $15,390. 18. Issued credit memo for $5,300 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,640. 19. Sold merchandise on account to Vista Co., $8,900, terms FOB shipping point, 2/10, n/30. Paid $55 for freight and added it to the invoice. The cost of the goods sold was $4,890. 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 $5,610 for merchandise delivered during March to customers under shipping terms of COD dartination Mar. 2. Sold merchandise on account to Equinox Co., $18,800, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,090. 3. Sold merchandise for $11,000 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,210. 4. Sold merchandise on account to Empire Co., $59,340, terms FOB shipping point, n/eom. TThe cost of the goods sold was $34,350. 5. Sold merchandise for $29,450 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $20,050. 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 $8,160. 16. Sold merchandise on account to Targhee Co., $27,400, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $15,390. 18. Issued credit memo for $5,300 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,640. 19. Sold merchandise on account to Vista Co., $8,900, terms FOB shipping point, 2/10, n/30. Paid $55 for freight and added it to the invoice. The cost of the goods sold was $4,890. 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 $5,610 for merchandise delivered during March to customers under shipping terms of FOB destination. Apr. 3. Paid City Bank $980 for service fees for handling MasterCard and American Express sales during March. 15. Paid $6,108 to state sales tax division for taxes owed on sales