Question

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.

Record on page 10 of the journal

Mar.	2	Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300.
	3	Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000.
	4	Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200.
	5	Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400.
	12	Received check for amount due from Equinox Co. for sale on March 2.
	14	Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350.
	16	Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000.
	18	Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.

Record on page 11 of the journal

Mar.	19	Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000.
	26	Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
	28	Received check for amount due from Vista Co. for sale of March 19.
	31	Received check for amount due from Empire Co. for sale of March 4.
	31	Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr.	3	Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
	15	Paid $6,544 to state sales tax division for taxes owed on sales.

Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Amsterdam Supply Co.General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Empire Co.
122	Accounts Receivable-Equinox Co.
123	Accounts Receivable-Targhee Co.
124	Accounts Receivable-Vista Co.
125	Notes Receivable
130	Inventory
131	Estimated Returns 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
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
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

Answer 1

Date	Account	Debit $	Credit $
March
2	Accounts Receivable Equinox Co.	18900
	Sales		18900
	Cost of Merchandise Sold	13300
	Merchandise Inventory		13300
3	Cash	12031
	sales		11350
	Sales tax payable(11350*6%)		681
	Cost of Merchandise Sold	7000
	Merchandise Inventory		7000
4	Accounts Receivable Empire Co.	55400
	Sales		55400
	Cost of Merchandise Sold	33200
	Merchandise Inventory		33200
5	Cash	31800
	sales		30000
	Sales tax payable(30000*6%)		1800
5	Cost of Merchandise Sold	19400
	Merchandise Inventory		19400
12	Cash	18711
	Sales Discounts (18900*1%)	189
	Accounts Receivable Equinox Co		18900
14	Cash	13700
	sales		11350
14	Cost of Merchandise Sold	8350
	Merchandise Inventory		8350
16	Accounts Receivable­Targhee Co.	27500
	Sales		27500
16	Cost of Merchandise Sold	16000
	Merchandise Inventory		16000
18	Sales Returns and Allowances	4800
	Accounts Receivable­Targhee Co		4800
18	Merchandise Inventory	2900
	Cost of Merchandise Sold		2900
19	Accounts Receivable Vista Co	8250
	Sales		8250
19	Accounts Receivable Vista Co	75
	Cash		75
19	Cost of Merchandise Sold	5000
	Merchandise Inventory		5000
26	Cash	22473
	Sales Discounts (22700*1%)	227
	Accounts Receivable­Targhee Co (27500-4800)		22700
28	Cash(8325-165)	8160
	Sales Discounts (8250*2%%)	165
	Accounts Receivable Vista Co.(8250+75)		8325
31	Cash	55400
	Accounts Receivable Empire Co		55400
31	Delivery Expense	5600
	Cash		5600
April
3	Credit Card Expense	940
	Cash		940
15	Sales Tax Payable	6544
	Cash		6544