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 Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:

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.

July 1. Sold merchandise on account to Landscapes Co., $15,200, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,100. 2. Sold merchandise for $21,700 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $14,100. 5. Sold merchandise on account to Peacock Company, $37,700, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $24,500. 8. Sold merchandise for $8,000 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $4,800. 13. Sold merchandise to customers who used MasterCard cards, $6,000. The cost of merchandise sold was $3,800. 14. Sold merchandise on account to Loeb Co., $11,300, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,700. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for $1,700 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,000. 18. Sold merchandise on account to Jennings Company, $5,800, terms FOB shipping point, 2/10, n/30. Paid $260 for freight and added it to the invoice. The cost of merchandise sold was $3,500. 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 $1,600 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 $1,070 for service fees for handling MasterCard and VISA sales during July 10. Paid $1,960 to state sales tax division for taxes owed on sales.

Explanation / Answer

I have in here combined entries of sales and inventory adjustment, you can segregate them also if you want. Please give a like for the efforts put in for the answer. Thanks

Date Account Titles Debit Credit July 1 Accounts Receivable - Landscape $15,200.00 Sales $15,200.00 1 Cost of Merchandise Sold $9,100.00 Merchandise Inventory $9,100.00 2 Cash $23,002.00 Sales $21,700.00 Sales Tax Payable $1,302.00 Cost of Merchandise Sold $14,100.00 Merchandise Inventory $14,100.00 5 Accounts Receivable - Jones Company $37,700.00 Sales $37,700.00 Cost of Merchandise Sold $24,500.00 Merchandise Inventory $24,500.00 8 Cash $8,400.00 Sales $8,000.00 Sales Tax Payable $400.00 Cost of Merchandise Sold $4,800.00 Merchandise Inventory $4,800.00 13 Cash $6,000.00 Sales $6,000.00 Cost of Merchandise Sold $3,800.00 Merchandise Inventory $3,800.00 14 Accounts Receivable - Loeb Co $11,300.00 Sales $11,300.00 Cost of Merchandise Sold $6,700.00 Merchandise Inventory $6,700.00 15 Cash $37,323.00 Sales Discount $377.00 Accounts Receivable - Peacock Company $37,700.00 16 Sales Returns $1,700.00 Accounts Receivable - Loeb Co. $1,700.00 Merchandise Inventory $1,000.00 Cost of Merchandise Sold $1,000.00 18 Accounts Receivable - Jennings $6,060.00 Sales $5,800.00 Cash $260.00 Cost of Merchandise Sold $3,500.00 Merchandise Inventory $3,500.00 24 Cash $9,504.00 Sales Discount $96.00 Accounts Receivable - Loabes Co $9,600.00 28 Cash $5,999.40 Sales Discount $61.00 Accounts Receivable - Jennings $6,060.00 31 Freight out $1,600.00 Cash $1,600.00 31 Cash $15,200.00 Accounts Receivable - Landscape $15,200.00 Aug-03 Credit Card Expense $1,070.00 Cash $1,070.00 Aug-10 Sales Tax Payable $1,960.00 Cash $1,960.00

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