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The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan.

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The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system.

Jan. 2 Purchased $17,650 of merchandise on account, FOB shipping point, terms 2/15, n/30.
5 Paid freight of $160 on the January 2 purchase.
6 Returned $3,200 of the merchandise purchased on January 2.
13 Sold merchandise on account, $49,500, FOB destination, 1/10, n/30. The cost of goods sold was $24,350.
15 Paid freight of $200 for the merchandise sold on January 13.
17 Paid for the purchase of January 2 less the return and discount.
23

Received payment on account for the sale of January 13 less the discount.

CHART OF ACCOUNTS

Air Systems Company
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
125 Notes Receivable
130 Merchandise Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
220 Unearned Rent
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Rent Revenue
EXPENSES
510 Purchases
511 Purchases Returns and Allowances
512 Purchases Discounts
513 Freight In
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense
Jan. 2 Purchases 17650.00 Accounts Payable 17650.00 Jan. 5 Freight In 160.00 Cash 160.00 Jan. 6 Accounts Payable 3,200.00 Purchases Returns and Allowances 3,200.00 Jan. 13 Accounts Receivable 49,500.00 Sales 49,500.00 Jan. 15 Delivery Expense 200.00 10 Cash 200.00 Jan. 17 Accounts Payable 14,45000 12 Cash 14,161.00 an. 23 Cash 49,500.00 13 14 Accounts Receivable 49,005.00

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