Question

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., $14,100, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,500.
2.	Sold merchandise for $25,500 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $16,600.
5.	Sold merchandise on account to Peacock Company, $32,800, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $21,300.
8.	Sold merchandise for $8,300 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,000.
13.	Sold merchandise to customers who used MasterCard cards, $10,000. The cost of merchandise sold was $6,300.
14.	Sold merchandise on account to Loeb Co., $9,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $5,800.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $1,500 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $800.
18.	Sold merchandise on account to Jennings Company, $6,800, terms FOB shipping point, 2/10, n/30. Paid $200 for freight and added it to the invoice. The cost of merchandise sold was $4,100.
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 $1,990 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 $1,010 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,240 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.

Date	Account	Debit	Credit
July 1-sale

Date	Account	Debit	Credit
July 1-cost

Date	Account	Debit	Credit
July 2-sale

Date	Account	Debit	Credit
July 2-cost

Date	Account	Debit	Credit
July 5-sale

Date	Account	Debit	Credit
July 5-cost

Date	Account	Debit	Credit
July 8-sale

Date	Account	Debit	Credit
July 8-cost

Date	Account	Debit	Credit
July 13-sale

Date	Account	Debit	Credit
July 13-cost

Date	Account	Debit	Credit
July 14-sale

Date	Account	Debit	Credit
July 14-cost

Date	Account	Debit	Credit
July 15

Date	Account	Debit	Credit
July 16-return

Date	Account	Debit	Credit
July 16-cost

Date	Account	Debit	Credit
July 18-sale

Date	Account	Debit	Credit
July 18-freight

Date	Account	Debit	Credit
July 18-cost

Date	Account	Debit	Credit
July 24

Date	Account	Debit	Credit
July 28

Date	Account	Debit	Credit
July 31-freight

Date	Account	Debit	Credit
July 31-collection

Date	Account	Debit	Credit
Aug. 3

Date	Account	Debit	Credit
Aug. 10

Answer 1

In the books of Green Lawn Supplies Co. :

Date	Account	Debit	Credit
		$	$
July 1	Accounts Receivable	14,100
	Sales		14,100
July 1	Cost of Goods Sold	8,500
	Inventory		8,500
July 2	Cash	27,030
	Sales		25,500
	Sales Tax Payable		1,530
July 2	Cost of Goods Sold	16,600
	Inventory		16,600
July 5	Accounts Receivable	32,800
	Sales		32,800
July 5	Cost of Goods Sold	21,300
	Inventory		21,300
July 8	Cash	8,715
	Sales		8,300
	Sales Tax Payable		415
July 8	Cost of Goods Sold	5,000
	Inventory		5,000
July 13	Cash	10,000
	Sales		10,000
July 13	Cost of Goods Sold	6,300
	Inventory		6,300
July 14	Accounts Receivable	9,900
	Sales		9,900

Contd.

July 14	Cost of Goods Sold	5,800
	Inventory		5,800
July 15	Cash	32,144
	Sales Discounts	656
	Accounts Receivable		32,800
July 16	Sales Returns and Allowances	1,500
	Accounts Receivable		1,500
July 16	Inventory	800
	Cost of Goods Sold		800
July 18	Accounts Receivable	6,800
	Sales		6,800
July 18	Accounts Receivable	200
	Cash		200
July 18	Cost of Goods Sold	4,100
	Inventory		4,100
July 24	Cash	8,316
	Sales Discounts	84
	Accounts Receivable		8,400
July 28	Cash	6,864
	Sales Discounts ( 6,800 x 0.02)	136
	Accounts Receivable ( 6,800 + 200)		7,000
July 31	Delivery Expense	1,990
	Cash		1,990
July 31	Cash	14,100
	Accounts Receivable		14,100
Aug 3	Credit Card Expense	1,010
	Cash		1,010
Aug 10	Sales Tax Payable	2,240
	Cash		2,240