The following were selected from among the transactions completed by Essex Compa

Question

The following were selected from among the transactions completed by Essex Company during July of the current year: July 3 Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice. 5 Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30. 6 Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000. 7 Returned $6,850 of merchandise purchased on July 5 from Kester Co. 13 Paid Hamling Co. on account for purchase of July 3. 15 Paid Kester Co. on account for purchase of July 5, less return of July 7. 21 Received cash on account from sale of July 6 to Parsley Co. 21 Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800. 22 Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000. 23 Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000. 28 Paid Parsley Co. a cash refund of $7,150 for returned merchandise from sale of July 6. The cost of the returned merchandise was $4,250. 31 Paid MasterCard service fee of $1,650.

Please help me Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Thank you - mike

Explanation / Answer

JOURNAL ENTRIES: DATE ACCOUNTS TITLE AND EXPLANATIONS DEBIT $ CREDIT $ 3-Jul Inventory Dr. 62650      Accounts payable 61200      Cash Account 1450 5-Jul Inventory Dr. 33450       Accounts payable 33450 6-Jul Accounts receivable Dr. 36000      Sales revenue 36000 Cost of Goods sold Dr. 25000      Inventory Account 25000 7-Jul Accounts payable Dr. 6850      Inventory Account 6850 13-Jul Accounts payable Dr. 61200      Inventory Account (61200*2%) 1224      Cash Account 59976 15-Jul Accounts payable Dr. 26600        Cash Account 26068         Inventory (33450-6850)*98% 532 21-Jul Cash Account Dr. 36000        Accounts receivable 36000 21-Jul Cash Account Dr. 108000       Sales revenue 108000 Cost of Goods sold Dr. 64800        Inventory Account 64800 22-Jul Accounts receivable Dr. 16650      Sales revenue 16650 Cost of goods sold Dr. 10000      Inventory Account 10000 23-Jul Cash Account Dr. 91200       Sales revenue 91200 Cost of goods sold Dr. 55000       Inventory Account 55000 28-Jul Sales return Account Dr. 7150         Cash account 7150 Inventory Account Dr. 4250       Cost of goods sold 4250 31-Jul Credit Card expense Dr. 1650        Cash Account 1650

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