Sales-Related Transactions Using Perpetual Inventory System The following select

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:

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.

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.

Explanation / Answer

cost of goods sold

Inventory

3180

3180

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

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