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., $13,900, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,300.
2.	Sold merchandise for $18,000 plus 8% sales tax to retail cash customers. The cost of merchandise sold was $11,700.
5.	Sold merchandise on account to Peacock Company, $30,100, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $19,600.
8.	Sold merchandise for $8,700 plus 6% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,200.
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., $10,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,400.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $1,600 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $900.
18.	Sold merchandise on account to Jennings Company, $5,200, terms FOB shipping point, 2/10, n/30. Paid $250 for freight and added it to the invoice. The cost of merchandise sold was $3,100.
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 $2,300 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 $910 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,260 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

Date	Account titles & Explanations				Debit	Credit
1-Jul	Accounts receivable				13,900
	sales					13,900
	cost of goods sold				8,300
	Merchandise inventory					8,300
2-Jul	Accounts receivable				19,440
	sales					18,000
	Sales tax paayble					1440
	cost of goods sold				11,700
	Merchandise ivnentory					11,700
5-Jul	Accounts receivable				30,100
	sales					30,100
	cost of goods sold				19,600
	Merchandise inventory					19,600
8-Jul	cash				9,222
	sales					8,700
	Sales tax paayble					522
	cost of goods sold				5,200
	Merchandise ivnentory					5,200
13-Jul
	Cash				10,000
	sales					10,000
	cost of goods sold				6,300
	Merchandise inventory					6,300
14-Jul	Accounts receivable				10,900
	sales					10,900
	cost of goods sold				6,400
	Merchandise inventory					6,400
15-Jul	Cash	(30100*98%)			29498
	Sales discount				602
	Account receivable					30,100
16-Jul	Sales return				1,600
	Account receivable					1,600
	Merchandise inventory				900
	cost of goods sold					900
18-Jul	Accounts receivable		(5200+250)		5450
	Sales					5450
	cost of goods sold				3,100
	Merchandise inventory					3,100
24-Jul	Cash		(9300*99%)		9207
	Sales discount				93
	Accounts receivable (10900--1600)					9300
28-Jul	Cash	(5200*98%+250)			5346
	Sales discount		(5200*2%)		104
	Accounts receivable					5,450
31-Jul	Merchandise inventory				2,300
	cash					2,300
31-Jul	Cash				13,900
	Account receivable					13,900
3-Aug	Service fees				910
	cash					910
10-Aug	Sales tax payable				2,260
	cash					2,260