Question

For the below transactions, please do journal entries.

1.   AAMI Funeral Home purchases $5,000 worth of merchandise for cash.
2.   AAMI Funeral Home purchases $3,000 worth of merchandise on account with terms 2/10, n/30.
3.   AAMI Funeral Home makes a sale of goods for $7,250 on account ($250 of which is Sales Tax) with terms 2/10, n/30.
4.   From transaction #2, AAMI Funeral Home makes payment within 10 days.
5.   From transaction #3, AAMI Funeral Home receives payment within 10 days.
6.   AAMI Funeral Home purchases $2,000 worth of merchandise plus $75 Freight-in with terms 2/10, n/30.
7.   From #6, the payment is made within 10 days.
8.   From #1, AAMI Funeral Home returns $1500 worth of that merchandise.
9.   AAMI Funeral Home makes a sale of goods for $4,600 on account ($200 of which is Sales Tax) with terms 2/10, n/30.
10.   AAMI Funeral Home pays a Freight-in charge of $250 on a prior purchase.

Answer 1

TRANSACTION	GENERAL JOURNAL	DEBIT	CREDIT
1)	Purchase	$ 5,000
	Cash		$ 5,000
	( to record purchase of merchandise for cash )
2)	Purchase	$ 3,000
	Account Payable		$ 3,000
	( to record purchase of merchandise for credit )
3)	Accounts Receivable { $ 250 + $ 7,000 }	$ 7,250
	Sales tax payable		$ 250
	Sales		$ 7,000
	( to record sale of merchandise for credit )
4)	Account Payable	$ 3,000
	Purchase discount ($ 3,000 * 2% )		$ 60
	Cash ( $ 3,000 - $ 60 )		$ 2,940
	( to record payment of transaction 2 with in 10 days)
5)	Cash { $ 7,250 - $ 140 }	$ 7,110
	Sales discount ( $ 7000 * 2% )	$ 140
	Accounts Receivable		$ 7,250
	( to record payment received for transaction 3 with in 10 days )
6)	Purchase	$ 2,000
	freight -in charge	$ 75
	Account Payable ( $ 2,000 + $ 75 )		$ 2,075
	( to record purchase of merchandise for credit )
7)	Accounts payable	$ 2,075
	Purchase discount ($ 2,000 * 2% )		$ 40
	Cash ( $ 2,075 - $ 40 )		$ 2,035
	( to record payment of transaction 6 with in 10 days)
8)	Cash	$ 1,500
	Purchase return		$ 1,500
	( to records the purchase return for transaction 1 )
9)	Accounts Receivable { $ 200 + $ 4,400 }	$ 4,600
	Sales tax payable		$ 200
	Sales		$ 4,400
	( to record sale of merchandise for credit )
10)	freight -in charge
	Cash
	( to record freight in charge paid )