Question

Sales-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:

July 1.	Sold merchandise on account to Landscapes Co., $14,300, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,600.
2.	Sold merchandise for $20,500 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $13,300.
5.	Sold merchandise on account to Peacock Company, $35,100, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $22,800.
8.	Sold merchandise for $12,400 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,400.
13.	Sold merchandise to customers who used MasterCard cards, $5,500. The cost of merchandise sold was $3,500.
14.	Sold merchandise on account to Loeb Co., $11,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,900.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $1,800 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,000.
18.	Sold merchandise on account to Jennings Company, $6,300, terms FOB shipping point, 2/10, n/30. Paid $230 for freight and added it to the invoice. The cost of merchandise sold was $3,800.
24.	Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
28.	Received check for amount due from Jennings Company for sale of July 18.
31.	Paid Black Lab Delivery Service $1,900 for merchandise delivered during July to customers under shipping terms of FOB destination.
31.	Received check for amount due from Landscapes Co. for sale of July 1.
Aug. 3.	Paid Hays Federal Bank $1,100 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,410 to state sales tax division for taxes owed on sales.

Required:

Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.

Answer 1

July	1	Accounts Receivable—Landscape Co.	14,300
		Sales		14,300
	1	Cost of Merchandise Sold	8,600
		Merchandise Inventory		8,600
	2	Cash	21,730
		Sales		20,500
		Sales Tax Payable		1,230
	2	Cost of Merchandise Sold	13,300
		Merchandise Inventory		13,300
	5	Accounts Receivable—Peacock Company	35,100
		Sales		35,100
	5	Cost of Merchandise Sold	22,800
		Merchandise Inventory		22,800
	8	Cash	13,268
		Sales		12,400
		Sales Tax Payable		868
	8	Cost of Merchandise Sold	7,400
		Merchandise Inventory		7,400
	13	Cash	5,500
		Sales		5,500
	13	Cost of Merchandise Sold	3,500
		Merchandise Inventory		3,500
	14	Accounts Receivable—loeb Co.	11,700
		Sales		11,700
	14	Cost of Merchandise Sold	6,900
		Merchandise Inventory		6,900
	15	Cash	34,749
		Sales Discounts	351
		Accounts Receivable—Peacock Company		35,100
	16	Sales Returns and Allowances	1800
		Accounts Receivable—loeb Co.		1800
	16	Merchandise Inventory	1,000.00
		Cost of Merchandise Sold		1,000.00
	18	Accounts Receivable—Horton Company	6,300
		Sales		6,300
	18	Accounts Receivable—Horton Company	230
		Cash		230
	18	Cost of Merchandise Sold	3,800
		Merchandise Inventory		3,800
	24	Cash	9,801
		Sales Discounts	99
		Accounts Receivable—loeb Co.		9,900
	28	Cash	6,404
		Sales Discounts	126
		Accounts Receivable—Horton Company		6,530
	31	Delivery Expense	1,900
		Cash		1,900
	31	Cash	14,300
		Accounts Receivable—Landscape Co.		14,300
Aug.	3	Credit Card Expense	1100
		Cash		1100
	10	Sales Tax Payable	2,410
		Cash		2,410