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., $13,200, terms FOB shipping point, n/eom. The cost of merchandise sold was $7,900. 2. Sold merchandise for $22,900 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $14,900. 5. Sold merchandise on account to Peacock Company, $30,000, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $19,500 8. Sold merchandise for $9,700 plus 6% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,800 13. Sold merchandise to customers who used MasterCard cards, $6,500. The cost of merchandise sold was $4,100 14. Sold merchandise on account to Loeb Co., $10,600, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,300 15. Received check for amount due from Peacock Company for sale on July 5 16. Issued credit memo for $1,600 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $900 18. Sold merchandise on account to Jennings Company, $6,900, terms FOB shipping point, 2/10, n/30. Paid $320 for freight and added it to the invoice. The cost of merchandise sold was $4,100. 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 $1,730 for merchandise delivered during July to customers under shipping terms of 31. Paid Black Lab Delivery Service $1,730 for merchandise delivered during July to customers under shipping terms of FOB destination 31. Received check for amount due from Land scapes Co. for sale of July 1. Aug. 3. Paid Hays Federal Bank $1,040 for service fees for handling MasterCard and VISA sales during July 10. Paid $2,250 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 no entry is required, leave the entry box blank. Date Account Debit Credit July 1-sale Credit Date Account Debit July 1-cost Credit Date Account Debit July 2-sale Account Date Debit Credit July 2-cost Credit Date Account Debit July 5-sale Date Account Debit Credit July 5-cost Account Credit Date Debit July 8-sale Account Debit Credit Date July 8-cost Date Debit Account Credit July 13-sale Credit Date Account Debit July 13-cost Date Account Debit Credit July 14-sale Debit Date Account Credit July 14-cost Date Account Debit Credit July 15 Debit Date Account Credit July 16- return Account Date 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 Credit Date Account Debit July 24 Credit Date Account Debit July 28 Debit Date Account Credit July 31- freight Date Account Debit Credit Credit Date Account Debit July 31- collection Date Account Debit Credit Aug. 3 Debit Date Account Credit Aug. 10
