Question
The following selected transactions were completed by Artic Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Jan. 2. Sold
The following selected transactions were completed by Artic Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Jan. 2. Sold merchandise on account to Mammoth Co., $15,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $9,000. 3. Sold merchandise for $8,000 plus 8% sales tax to retail cash customers. The cost of merchandise sold was $6,000. 4. Sold merchandise on account to Sando Co., $12,500, terms FOB shipping point, n/eom. The cost of merchandise sold was $7,500. 5. Sold merchandise for $10,000 plus 8% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $6,000. 12. Received check for amount due from Mammoth Co. for sale on January 2. 14. Sold merchandise to customers who used American Express cards, $9,000. The cost of merchandise sold was $5,500. 16. Sold merchandise on account to Malloy Co., $18,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $11,250. Jan. 18. Issued credit memo for $2,700 to Malloy Co. for merchandise returned from sale on January 16. The cost of the merchandise returned was $1,600. 19. Sold merchandise on account to Savin Co., $21,500, terms FOB shipping point, 2/10, n/30. Added $500 to the invoice for prepaid freight. The cost of merchandise sold was $12,900. 26. Received check for amount due from Malloy Co. for sale on January 16 less credit memo of January 18 and discount. 28. Received check for amount due from Savin Co. for sale of January 19. 31. Received check for amount due from Sando Co. for sale of January 4. 31. Paid Eagle Delivery Service $6,190 for merchandise delivered during January to customers under shipping terms of FOB destination. Feb. 3. Paid City Bank $1,350 for service fees for handling MasterCard and American Express sales during January. 15. Paid $2,100 to state sales tax division for taxes owed on sales.
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