Question
Waterway Company uses the perpetual method, a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. The
Waterway Company uses the perpetual method, a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. The cost of all merchandise sold was 65% of the sales price. July 2 Sold merchandise for $20,500 to M. Jordan on account. Credit terms 1/10, n/30. Sales invoice No. 100. July 5 Received a check for $3,800 (no discount) from K. Bryant in payment of his account. July 8 Sold merchandise to S. O'Neal for $3,400 cash. July 10 Received a check in payment of Sales invoice No. 100 from M. Jordan less the 1% discount. July 15 Sold merchandise for $9,500 to K. Jabbar on account. Credit terms 1/10, n/30. Sales invoice No. 101. July 18 Borrowed $17,500 cash from Pacific Bank signing a 6-month, 10% note. July 20 July 25 July 31 Sold merchandise for $14,500 to J. West on account. Credit terms 1/10, n/30. Sales invoice No. 102. Issued a credit (reduction) of $3,260 to J. West as an allowance for damaged merchandise previously sold on account. Received a check from K. Jabbar for $8,000 as partial payment on account. WATERWAY COMPANY Sales Journal S1 Date Account Debited Invoice No. Ref. Accounts Receivable Dr. Sales Revenue Cr. Cost of Goods Sold Dr. Inventory Cr. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation (Do not leave any answer field blank. Enter O for amounts) Date Account Credited Ref. Cash Dr. July 5 K. Bryant July 8 3800 3400 Debit WATERWAY COMPANY Credit Cash Receipts Journal Cost of Goods Sold Dr. Accounts Receivab Sales Discounts Dr. Cr. Sales Revenue Cr. Other Accounts Cr. Inventory Cr. July 10- M.Jordan July 18 Notes Payable 17500 0 July 31 K. Jabbar 8000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started