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.
Instructions
Journalize the transactions.
Answer:
July 3 Merchandise Inventory61,426
Accounts Payable—Hamling Co.61,426
[$72,000 – ($72,000 × 15%)] = $61,200
[$61,200 – ($61,200 × 2%)] + $1,450
5 Merchandise Inventory32,781
Accounts Payable—Kester Co.32,781
[$33,450 – ($33,450 × 2%)]
6 Accounts Receivable—Parsley Co. 36,000
Sales36,000
6 Cost of Merchandise Sold 25,000
Merchandise Inventory25,000
7 Accounts Payable—Kester Co. 6,713
Merchandise Inventory6,713
[$6,850 – ($6,850 × 2%)]
13 Accounts Payable—Hamling Co. 61,426
Cash61,426
15 Accounts Payable—Kester Co. 26,068
Cash26,068
($32,781 – $6,713)
21 Cash36,000
Accounts Receivable—Parsley Co.36,000
21 Cash108,000
Sales108,000
21 Cost of Merchandise Sold 64,800
Merchandise Inventory64,800
22 Accounts Receivable—Tabor Co. 16,317
Sales16,317
[$16,650 – ($16,650 × 2%)]
22 Cost of Merchandise Sold 10,000
Merchandise Inventory10,000
July 23 Cash91,200
Sales91,200
23 Cost of Merchandise Sold 55,000
Merchandise Inventory55,000
28 Customer Refunds Payable 7,150
Cash7,150
28 Merchandise Inventory4,250
Estimated Returns Inventory 4,250
31 Credit Card Expense1,650
Cash1,650