Question

Create a general journal for the following merchandising transactions of Ryan’s, which uses a perpetual inventory system and the gross method:

Jul. 1 - purchased merchandise from Wright company for $11,000 under credit terms of 1/15, n30, FOB Shipping point, invoice dated July 1.

Jul.2 - Sold merchandise to Lee Co. for $3,400 under credit terms of 2/10, n60, FOB Shipping point, invoice dated July 2. The merchandise had cost of $2,040.

Jul. 3 - Paid $1,125 cash for freight charges on the purchase of July 1.

Jul. 8 - Sold merchandise that had cost $4000 for $6700 cash

Jul. 9 - purchased merchandise from Lane Co. for $4700 under credit terms of 2/15, n60, FOB destination, invoice dated July 9.

Jul. 11 - received a $900 credit memorandum from lane company for the part of the merchandise purchased on July 9.

Jul. 12 - received the balance due from Lee company for the invoice dated July 2, net of discount.

Jul. 16 - paid the balance due to wright company within the discount period.

Jul. 19 - sold merchandise that cost $4300 to Martin Co. for $6200 under credit terms of 2/15, n60, FOB shipping, invoice dated July 19.

Jul. 21 - issued a $1200 credit memorandum to Martin Co. for an allowance on goods sold on July 19.

Jul. 24 - paid Lane Co. the balance due, net of discount

Jul. 30 - received the balance due from Martin Co. for the invoice acted July 19, net of discount

Jul. 31 - sold merchandise that cost $7200 to Lee company for $12000 under credit terms of 2/10, n60, FOB shipping point, invoice dated July 31.

Answer 1

Jul-01	Merchandise inventory	11000
	Accounts payable-Wright company		11000
Jul-02	Accounts receivable-Lee Co	3400
	Sales		3400
	Cost of goods sold	2040
	Merchandise inventory		2040
Jul-03	Merchandise inventory	1125
	Cash		1125
Jul-08	Cash	6700
	Sales		6700
	Cost of goods sold	4000
	Merchandise inventory		4000
Jul-09	Merchandise inventory	4700
	Accounts payable-Lane Co		4700
Jul-11	Accounts payable-Lane Co	900
.	Merchandise inventory		900
Jul-12	Cash (3400*98%)	3332
	Sales discount (3400*2%)	68
	Accounts receivable-Lee Co		3400
Jul-16	Accounts payable-Wright Company	11000
	Merchandise inventory (11000*1%)		110
	Cash (11000*99%)		10890
Jul-19	Accounts receivable-Martin Co	6200
	Sales		6200
	Cost of goods sold	4300
	Merchandise inventory		4300
Jul-21	Sales returns and allowances	1200
	Accounts receivable-Martin Co		1200
Jul-24	Accounts payable-Lane Co (4700-900)	3800
	Merchandise inventory (3800*2%)		76
	Cash (3800*98%)		3724
Jul-30	Cash (6200*98%)	6076
	Sales discount (6200*2%)	124
	Accounts receivable-Lee Co		6200
Jul-31	Accounts receivable-Lee Co	12000
	Sales		12000
	Cost of goods sold	7200
	Merchandise inventory		7200