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., $19,800, terms Freight terms in which the seller pays the transportation costs from the shipping point to the final destination.FOB destination, 1/10, n/30. The cost of the goods sold was $13,110.
3.	Sold merchandise for $10,400 plus 6% sales tax to retail cash customers. The cost of the goods sold was $6,620.
4.	Sold merchandise on account to Empire Co., $60,290, terms Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination.FOB shipping point, n/eom. TThe cost of the goods sold was $31,500.
5.	Sold merchandise for $32,550 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $18,520.
12.	Received check for amount due from Equinox Co. for sale on March 2.
14.	Sold merchandise to customers who used American Express cards, $14,680. The cost of the goods sold was $8,760.
16.	Sold merchandise on account to Targhee Co., $26,900, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $17,510.
18.	Issued A form used by a seller to inform the buyer of the amount the seller proposes to credit to the account receivable due from the buyer.credit memo for $4,700 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,190.
19.	Sold merchandise on account to Vista Co., $8,300, terms FOB shipping point, 2/10, n/30. Paid $75 for freight and added it to the The bill that the seller sends to the buyer.invoice. The cost of the goods sold was $4,710.
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 $6,070 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3.	Paid City Bank $900 for service fees for handling MasterCard and American Express sales during March.
15.	Paid $6,051 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.

Answer 1

Date	Particulars	Dr/Cr	Amount	Amount
Mar-02	Equinox Co.	Dr	$19,800
	Sales	Cr		$19,800
(Being sales made to Equinox Co. on credit)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-02	Cost of Goods Sold	Dr	$13,110
	Inventory	Cr		$13,110
(Being Cost of Sales recorded for sales made to Equinox Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-03	Cash	Dr	$11,024
	Sales	Cr		$10,400
	Sales Tax Payable	Cr		$624
(Being sales made to retail cash customers and sales tax collected along with sales value)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-03	Cost of Goods Sold	Dr	$6,620
	Inventory	Cr		$6,620
(Being Cost of Sales recorded for cash sales made above)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-04	Empire Co.	Dr	$60,290
	Sales	Cr		$60,290
(Being sales made to Empire Co. on credit)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-04	Cost of Goods Sold	Dr	$31,500
	Inventory	Cr		$31,500
(Being Cost of Sales recorded for sales made to Empire Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-05	Bank	Dr	$34,503
	Sales	Cr		$32,550
	Sales Tax Payable	Cr		$1,953
(Being sales made to retail cash customers (payment by mastercard) and sales tax collected along with sales value)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-05	Cost of Goods Sold	Dr	$18,520
	Inventory	Cr		$18,520
(Being Cost of Sales recorded for cash sales made above)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-12	Bank	Dr	$19,602
	Cash Discount expense	Dr	$198
	Equinox Co.	Cr		$19,800
(Being check received from Equinox Co. after giving cash discount of 1% based on 1/10, n/30 term)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-14	Bank	Dr	$14,680
	Sales	Cr		$14,680
(Being sales made to retail cash customers (payment by American Express))
Date	Particulars	Dr/Cr	Amount	Amount
Mar-14	Cost of Goods Sold	Dr	$8,760
	Inventory	Cr		$8,760
(Being Cost of Sales recorded for cash sales made above)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-16	Targhee Co.	Dr	$26,900
	Sales	Cr		$26,900
(Being sales made to Targhee Co. on credit)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-16	Cost of Goods Sold	Dr	$17,510
	Inventory	Cr		$17,510
(Being Cost of Sales recorded for sales made to Targhee Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-18	Sales Returns	Dr	$4,700
	Targhee Co.	Cr		$4,700
(Being Credit Memo issued to Targhee Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-18	Inventory	Dr	$3,190
	Cost of Goods Sold	Cr		$3,190
(Being Cost of Goods Sold reversed for sales returns from Targhee Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-19	Vista Co.	Dr	$8,375
	Sales	Cr		$8,375
(Being sales made to Vista Co. on credit)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-19	Freight Expense	Dr	$75
	Cash	Cr		$75
(Being amount paid for Freight expenses paid for shipping goods to Vista Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-19	Cost of Goods Sold	Dr	$17,510
	Inventory	Cr		$17,510
(Being Cost of Sales recorded for sales made to Vista Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-26	Bank	Dr	$21,978
	Cash Discount expense	Dr	$222
	Targhee Co.	Cr		$22,200
(Being check received from Targhee Co. after giving cash discount of 1% based on 1/10, n/30 term)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-28	Bank	Dr	$8,207.50
	Cash Discount expense	Dr	$167.50
	Vista Co.	Cr		$8,375
(Being check received from Targhee Co. after giving cash discount of 2% based on 2/10, n/30 term)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-31	Bank	Dr	$60,290
	Empire Co.	Cr		$60,290
(Being check received from Empire Co.)
Date	Particulars	Dr/Cr	Amount	Amount
Mar-31	Freight expenses	Dr	$6,070
	Cash	Cr		$6,070
(Being freight expenses paid to Fleetwood Delivery Service for the month of March)
Date	Particulars	Dr/Cr	Amount	Amount
Apr-03	Bank Fees/Bank Charges	Dr	$900
	Bank	Cr		$900
(Being service fees by the bank for for handling MasterCard and American Express sales for March)
Date	Particulars	Dr/Cr	Amount	Amount
Apr-15	Sales Tax Payable	Dr	$6,051
	Bank	Cr		$6,051
(Being amount paid to state sales tax division for taxes owed on sales)