Question

Sales-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:

Mar. 2.	Sold merchandise on account to Equinox Co., $18,600, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,030.
3.	Sold merchandise for $11,050 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,420.
4.	Sold merchandise on account to Empire Co., $56,940, terms FOB shipping point, n/eom. TThe cost of the goods sold was $31,370.
5.	Sold merchandise for $28,550 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,210.
12.	Received check for amount due from Equinox Co. for sale on March 2.
14.	Sold merchandise to customers who used American Express cards, $13,690. The cost of the goods sold was $7,600.
16.	Sold merchandise on account to Targhee Co., $30,100, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $17,140.
18.	Issued credit memo for $5,000 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,180.
19.	Sold merchandise on account to Vista Co., $8,000, terms FOB shipping point, 2/10, n/30. Paid $65 for freight and added it to the invoice. The cost of the goods sold was $5,460.
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 $5,810 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3.	Paid City Bank $990 for service fees for handling MasterCard and American Express sales during March.
15.	Paid $6,075 to state sales tax division for taxes owed on sales.

Required:

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

Date	Account	Debit	Credit
Mar. 2-sale	Accounts Receivable-Equinox Co.
	Sales

Date	Account	Debit	Credit
Mar. 2-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 3-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
Mar. 3-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 4-sale	Accounts Receivable-Empire Co.
	Sales

Date	Account	Debit	Credit
Mar. 4-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 5-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
Mar. 5-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 12	Cash
	Accounts Receivable-Equinox Co.

Date	Account	Debit	Credit
Mar. 14-sale	Cash
	Sales

Date	Account	Debit	Credit
Mar. 14-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 16-sale	Accounts Receivable-Targhee Co.
	Sales

Date	Account	Debit	Credit
Mar. 16-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 18-return	Customer Refunds Payable
	Accounts Receivable-Targhee Co.

Date	Account	Debit	Credit
Mar. 18-cost	Inventory
	Estimated Returns Inventory

Date	Account	Debit	Credit
Mar. 19-sale	Accounts Receivable-Vista Co.
	Sales

Date	Account	Debit	Credit
Mar. 19-freight	Accounts Receivable-Vista Co.
	Cash

Date	Account	Debit	Credit
Mar. 19-cost	Cost of Goods Sold
	Inventory

Date	Account	Debit	Credit
Mar. 26	Cash
	Accounts Receivable-Targhee Co.

Date	Account	Debit	Credit
Mar. 28	Cash
	Accounts Receivable-Vista Co.

Date	Account	Debit	Credit
Mar. 31-collection	Cash
	Accounts Receivable-Empire Co.

Date	Account	Debit	Credit
Mar. 31-freight	Delivery Expense
	Cash

Date	Account	Debit	Credit
Apr. 3	Credit Card Expense
	Cash

Date	Account	Debit	Credit
Apr. 15	Sales Tax Payable
	Cash

Answer 1

Date	account titles and explanation	debit	credit
Mar. 2 sale	accounts receivable - Equinox Co.	18600
	Sales		18600
Mar. 2 cost	cost of goods sold	13030
	Inventory		13030
Mar. 3 sale	accounts receivable	11050
	Sales tax payable (11050*6%)		663
	Sales revenue (11050-663)		10387
Mar. 3 cost	cost of goods sold	7420
	Inventory		7420
Mar. 4 sales	accounts receivable - empire Co.	56940
	Sales		56940
Mar. 4 cost	Cost of goods sold	31370
	Inventory		31370
Mar. 5 sales	accounts receivable	28550
	Sales tax payable (28550*6%)		1713
	sales revenue (28550-26837)		26837
Mar. 5 cost	cost of goods sold	19210
	Inventory		19210
Mar. 12	cash	18600
	Accounts receivable - equinox Co.		18600
Mar. 14 sales	Accounts receivable - American express	13690
	Sales		13690
Mar. 14 cost	Cost of goods sold	7600
	Inventory		7600
Mar. 16 sales	accounts receivable - Targhee Co.	30100
	Sales		30100
Mar. 16 cost	Cost of goods sold	17140
	Inventory		17140
Mar. 18 return	sales return and allowances	5000
	Accounts receivable - Targhee Co.		5000
Mar. 18 cost	cost of goods sold Inventory	3180	3180
Mar. 19 sales	accounts receivable - Vista Co.	8000
	Sales		8000
Mar. 19 Freight	accounts receivable - Vista Co.	65
	Sales		65
Mar. 19 cost	cost of goods sold	5460
	Inventory		5460
Mar. 26	cash (25100-251)	24849
	Sales discount (25100*1%)	251
	Accounts receivable - Targhee Co.		25100
Mar. 28	cash	8065
	Accounts receivable - Vista Co.		8065
Mar 31 collection	cash	56940
	Accounts receivable - Vista Co.		56940
Mar 31 freight	delivery expense	5810
	Cash		5810
Apr. 3	credit card expense	990
	Cash		990
Apr. 15	sales tax payable	6075
	Cash		6075