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Purchase-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Niles Co. during...

  1. Purchase-Related Transactions Using Perpetual Inventory System

    The following selected transactions were completed by Niles Co. during March of the current year:

    Mar. 1. Purchased merchandise from Haas Co., $18,800, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $525 was added to the invoice.
    5. Purchased merchandise from Whitman Co., $15,350, terms FOB destination, n/30.
    10. Paid Haas Co. for invoice of March 1.
    13. Purchased merchandise from Jost Co., $4,900, terms FOB destination, 1/10, n/30.
    14. Issued debit memo to Jost Co. for $900 of merchandise returned from purchase on March 13.
    18. Purchased merchandise from Fairhurst Company, $12,750, terms FOB shipping point, n/eom.
    18. Paid freight of $260 on March 18 purchase from Fairhurst Company.
    19. Purchased merchandise from Bickle Co., $11,350, terms FOB destination, 2/10, n/30.
    23. Paid Jost Co. for invoice of March 13, less debit memo of March 14.
    29. Paid Bickle Co. for invoice of March 19.
    31. Paid Fairhurst Company for invoice of March 18.
    31. Paid Whitman Co. for invoice of March 5.

    Required: Journalize the entries to record the transactions of Britt Co. for March.Sales-Related Transactions Using Perpetual Inventory System

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.

Solutions

Expert Solution

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Company name
Journal entries (Under Net Method)
Date General Journal Debit Credit
Mar 1 Merchandise inventory          18,949
Account payable - Hass Co.          18,949
(To record purchased of inventory on account) (18800-(18800*2%)+525)
Mar 5 Merchandise inventory          15,350
Account payable -Whitman Co.          15,350
(To record purchased of inventory on account)
Mar 10 Account payable - Hass Co.          18,949
Cash          18,949
(To record cash paid to supplier.)
Mar 13 Merchandise inventory            4,851
Account payable -Jost Co.            4,851
(To record purchased of inventory on account) (4900-(4900*1%))
Mar 14 Account payable -Jost Co.                891
Merchandise inventory                891
(To record goods returned to suppliers) (900-(900*1%))
Mar 18 Merchandise inventory          12,750
Account payable -Fairhurst Company          12,750
(To record purchased of inventory on account)
Mar 18 Merchandise inventory                260
Cash                260
(To record freight paid on purchase of inventory.)
Mar 19 Merchandise inventory          11,123
Account payable -Bickle Co.          11,123
(To record purchased of inventory on account) ((11350-(11350*2%))
Mar 23 Account payable -Jost Co.            3,960
Cash            3,960
(To record cash paid to supplier.) (4851-891)
Mar 29 Account payable -Bickle Co.          11,123
Cash          11,123
(To record cash paid to supplier.)
Mar 31 Account payable -Fairhurst Company          12,750
Cash          12,750
(To record cash paid to supplier.)
Mar 31 Account payable -Whitman Co.          15,350
Cash          15,350
(To record cash paid to supplier.)

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