selected accounts from the chart of accounts of mer

Question 1 Selected accounts from the chart of accounts of Mercer Company are shown below. 101 Cash 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 401 Sales Revenue 414 Sales Discounts 505 Cost of Goods Sold 726 Salaries and Wages Expense The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions. Jan. 3 Purchased merchandise on account from Gallagher Co. $9,400. 4 Purchased supplies for cash $70. 4 Sold merchandise on account to Wheeler $6,790, invoice no. 371, terms 1/10, n/30. 5 Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3. 6 Made cash sales for the week totaling $3,850. 8 Purchased merchandise on account from Phegley Co. $4,700. 9 Sold merchandise on account to Linton Corp. $8,000, invoice no. 372, terms 1/10, n/30. 11 Purchased merchandise on account from Cora Co. $3,640. 13 Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $6,010 15 Received payment from Linton Corp. for invoice no. 372. 15 Paid semi-monthly salaries of $14,800 to employees. 17 Received payment from Wheeler for invoice no. 371. 17 Sold merchandise on account to Delaney Co. $1,860, invoice no. 373, terms 1/10, n/30. 19 Purchased equipment on account from Dozier Corp. $5,630. Cach sales for the week totaled s3 550