The following transactions took place at The Garden Center during June 2019. The Garden Center uses a perpetual inventory system. Record the transactions in a general journal. Use 10 as the page number for the general journal.
DATE TRANSACTIONS
2019
June 1 Purchased lawn mowers for $5,080 plus a freight charge of $320 from Mow Down Corporation, Invoice 201, dated June 1; the terms are 2/10, n/30.
5 Sold garden supplies on account to Arthur Gomez, terms 1/10, n/30; issued Sales Slip 888 for $1,000. The cost of the merchandise sold was $500.
7 Received Credit Memorandum 310 for $550 from Mow Down Corporation for defective lawn mowers returned; the goods were purchased on Invoice 201, dated June 1.
9 Accepted a return of various garden supplies from Arthur Gomez; the items were originally sold on Sales Slip 888 of June 5. Issued Credit Memorandum 89 for $100. The cost of the returned items was $50.
10 Issued Check 1555 to pay the amount due to Mow Down Corporation for Invoice 201, dated June 1, less the return of June 7 and less the cash discount.
15 Received payment from Arthur Gomez for the sale of June 5, less the return of June 9 and less the cash discount.
15 Recorded sales on credit cards for the two-week period ended June 15, $15,000; the bank charges a 2% fee on all credit card sales. The cost of merchandise sold was $7,500.
17 Purchased merchandise on account from Patio Wholesalers for $9,000, subject to trade discounts of 30% and 10%; terms 1/10, n/30, Invoice 2178.
26 Paid amount owed to Patio Wholesalers for the purchase of June 17, Check 1285.
Analyze:
Assume 20 lawn mowers were purchased from Mow Down Corporation on June 1. What was the average cost per lawn mower? (Hint: Include the freight charges as part of the cost of the lawn mowers.)