Selected accounts from the chart of accounts of Mercer Company are shown below.

Question

Selected accounts from the chart of accounts of Mercer Company are shown below.

The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions.

Mercer Company uses the following journals.

Using the selected accounts provided:

Record and Post the January transactions in the appropriate journal noted. Foot and cross-foot all special journals.

101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable

Explanation / Answer

1)

Recording journal entries is as follows:

Jan Account title and equation Debit($) Credit($) 3 Inventory 9700 Company G 9700 (To record the purhcase) 4 Supplies 80 Cash 80 (To record the purchase of supplies) 4 Company W 6610 Sale 6610 (To record the sale) 5 Company G 300 Inventory 300 (To record the return of material) 6 Cash 3250 Sale 3250 (To record the sale) 8 Inventory 4900 Company P 4900 (To record the purhcase) 9 Company L 7600 Sale 7600 (To record the sale) 11 Inventory 3530 Company C 3530 (To record the purhcase) 13 Company G 9400 Cash 9212 Discount received 188 (To record the payment) 13 Cash 5260 Sales 5260 (To record the cash sale) 15 Cash 7524 Discount allowed 76 Company L 7600 (On receipt of cash) 15 Salaries 13900 Cash 13900 (To record the salaries) 17 Cash 6610 Company W 6610 (To record the cash sale) 17 Company D 2960 Sale 2960 (To record the sale) 19 Equipment 5710 Company Dz 5710 (Recoed the purchase of quipment) 20 Cash 4100 Sales 4100 (To record the cash sale) 20 Company P 4900 Discount 98 Cash 4802 (To record the payment) 23 Inventory 7620 Company G 7620 (To record the purchase of inventory) 24 Inventory 5230 Company A 5230 (To record the purchase of inventory) 27 Cash 4750 Sales 4750 (To record the cash sale) 30 Cash 2960 Company D 2960 (To record the receipt) 31 Salaries 12070 Cash 12070 (To record the salaries) 31 Company W 9190 Sale 9190 (To record the sale)

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