Question

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.

Record on page 10 of the journal

Mar. 2 Sold merchandise on account to Equinox Co., 518,900, terms FOB destination, 1/10,n/30. The cost of the merchandise sold was $13,300. 

3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000 

4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200. 

5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19.400. 

12 Received check for amount due from Equinox Co. for sale on March 2 

14 Sold merchandise to customers who used American Express cards. $13.700. The cost of merchandise sold was $8.350. 

16 Sold merchandise on account to Targhee Co., 527,500, terms FOB shipping point, 1/10, 1/30. The cost of merchandise sold was $16,000.

18  Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900. 

19 Sold merchandise on account to Vista Co. 58.250 terms FOB shipping point, 2/10, n/30. Added 575 to the invoice for prepaid freight. The cost of merchandise sold was $5,000 

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 Pald Fleetwood Delivery Service 55,600 for delivery of merchandise in March to customers under shipping terms of FOB destination 

Apr 3 Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.

15 Paid $6.544 to state sales tax division for taxes owed on sales.

Answer 1