a edugen.wileyplus.com Thread: Orozco& Rivera: Com. Problem 7-4A Selected accoun
ID: 2551620 • Letter: A
Question
a edugen.wileyplus.com Thread: Orozco& Rivera: Com. Problem 7-4A Selected accounts from the chart of accounts of Mercer Company are shown below. Course Home Chegg Study I Guided Solution. WileyPLUS 401 Sales Revenue 101 Cash 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 126 Supplies 157 Equipment 201 Accounts Payable 414 Sales Discounts 505 Cost of Goods Sold 726 Salaries and Wages Expense The cost of all merchandise sold was 60% of the sales price. During January, Mercer completed the following transactions. Jan. 3 Purchased merchandise on account from Gallagher Co. $9,700 4 Purchased supplies for cash $80. 4 Sold merchandise on account to Wheeler $6,610, invoice no. 371, terms 1/10, n/30. $300 worth of damaged goods purchased on account from Gallagher Co. on January 3. 6 Made cash sales for the week totaling $3,250. 8 Purchased merchandise on account from Phegley Co. $4,900 9 Sold merchandise on account to Linton Corp. $7,600, invoice no. 372, terms 1/10, n/30. 11 Purchased merchandise on account from Cora Co. $3,530. 13 Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $5,260. 15 Received payment from Linton Corp. for invoice no. 372 15 Paid semi-monthly salaries of $13,900 to employees. 17 Received payment from Wheeler for invoice no. 371. 17 Sold merchandise on account to Delaney Co. $2,960, invoice no. 373, terms 1/10, n/30. 19 Purchased equipment on account from Dozier Corp. $5,710. 20 Cash sales for the week totaled $4,100 20 Paid in full Phegley Co. on account less a 2% discount. 23 Purchased merchandise on account from Gallagher Co. $7,620. 24 Purchased merchandise on account from Atchison Corp. $5,230. 27 Made cash sales for the week totaling $4,750. 30 Received payment from Delaney Co. for invoice no. 373. 31 Paid semi-monthly salaries of $12,070 to employees. 31 Sold merchandise on account to Wheeler $9,190, invoice no. 374, terms 1/10, n/30. Mercer Company uses the following journals 20 FS F1 F3 F4 8Explanation / Answer
1. Sales journal:
Accounts receivable dr.
Cost of goods sold Dr.
Date
Accounts debited
Invoice no.
Ref
Sales Cr
Inventory Cr.
4-Jan
Wheeler
371
6,610
3,966
9-Jan
Linton corp
372
7,600
4,560
17-Jan
Delaney
373
2,960
1,776
31-Jan
Wheeler
374
9,190
5,514
26,360
15,816
2.Purchse Journal:
Merchendise inventory Dr.
Date
Account credited
Ref
Accounts payable Cr.
3-Jan
Gallagher Co.
9,700
8-Jan
Phegley Co.
4,900
11-Jan
Cora Co.
3,530
23-Jan
Gallagher Co.
7,620
24-Jan
Atchison Corp.
5,230
30,980
3. Cash receipts Journal:
Cost of goods sold Dr.
Date
Account credited
Ref
Cash Dr.
Sales discount Dr.
Accounts receivable Cr.
Sales Cr.
Other accounts cr.
Merchendise inventory Cr.
6-Jan
3,250
3,250
1,950
13-Jan
5,260
5,260
3,156
15
Linton corp
7,524
76
7,600
17
Wheeler
6,610
6,610
20
4,100
4,100
2,460
27
4,750
4,750
2,850
30
Delaney
2,960
2,960
34,454
76
17,170
17,360
10,416
4. Cash Payment Journal:
Date
Accounts debited
Ref
Other accounts Dr.
Accounts payable Dr.
Merchandise inventory Cr.
Cash Cr.
4-Jan
Supplies
80
80
13
Gallagher Co. (9,700-300 returned)
9,400
188
9,212
15
Salaries
13,900
13,900
20
Phegley Co.
4,900
98
4,802
31
Salaries
12,070
12,070
26,050
14,300
286
40,064
5. General journal:
Date
Accounts and explanation
Ref
Debit
Credit
Jan 5
Accounts payable - Gallagher Co.
Merchandise inventory
300
300
Jan 19
Equipment
Accounts payable -Dozler corp.
5,710
5,710
Accounts receivable dr.
Cost of goods sold Dr.
Date
Accounts debited
Invoice no.
Ref
Sales Cr
Inventory Cr.
4-Jan
Wheeler
371
6,610
3,966
9-Jan
Linton corp
372
7,600
4,560
17-Jan
Delaney
373
2,960
1,776
31-Jan
Wheeler
374
9,190
5,514
26,360
15,816
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.