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:

July 1.	Sold merchandise on account to Landscapes Co., $13,700, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,200.
2.	Sold merchandise for $19,100 plus 8% sales tax to retail cash customers. The cost of merchandise sold was $12,400.
5.	Sold merchandise on account to Peacock Company, $32,800, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $21,300.
8.	Sold merchandise for $8,400 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,000.
13.	Sold merchandise to customers who used MasterCard cards, $8,000. The cost of merchandise sold was $5,000.
14.	Sold merchandise on account to Loeb Co., $9,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $5,800.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $1,500 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $800.
18.	Sold merchandise on account to Jennings Company, $6,500, terms FOB shipping point, 2/10, n/30. Paid $340 for freight and added it to the invoice. The cost of merchandise sold was $3,900.
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 $2,010 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 $1,040 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,530 to state sales tax division for taxes owed on sales.

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.

Date	Account	Debit	Credit
July 1-sale	Accounts Receivable-Landscapes Co.
	Sales

Date	Account	Debit	Credit
July 1-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 2-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
July 2-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 5-sale	Accounts Receivable-Peacock Company
	Sales

Date	Account	Debit	Credit
July 5-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 8-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
July 8-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 13-sale	Cash
	Sales

Date	Account	Debit	Credit
July 13-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 14-sale	Accounts Receivable-Loeb Co.
	Sales

Date	Account	Debit	Credit
July 14-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 15	Cash
	Accounts Receivable-Peacock Company

Date	Account	Debit	Credit
July 16-return	Customer Refunds Payable
	Accounts Receivable-Loeb Co.

Date	Account	Debit	Credit
July 16-cost	Merchandise Inventory
	Estimated Returns Inventory

Date	Account	Debit	Credit
July 18-sale	Accounts Receivable-Jennings Company
	Sales

Date	Account	Debit	Credit
July 18-freight	Accounts Receivable-Jennings Company
	Cash

Date	Account	Debit	Credit
July 18-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 24	Cash
	Accounts Receivable-Loeb Co.

Date	Account	Debit	Credit
July 28	Cash
	Accounts Receivable-Jennings Company

Date	Account	Debit	Credit
July 31-freight	Delivery Expense
	Cash

Date	Account	Debit	Credit
July 31-collection	Cash
	Accounts Receivable-Landscapes Co.

Date	Account	Debit	Credit
Aug. 3	Credit Card Expense
	Cash

Date	Account	Debit	Credit
Aug. 10	Sales Tax Payable
	Cash

Answer 1

Date	Account	Debit	Credit
July 1-sale	Accounts Receivable-Landscapes Co.	13700
	Sales		13700
Date	Account	Debit	Credit
July 1-cost	Cost of Merchandise Sold	8200
	Merchandise Inventory		8200
Date	Account	Debit	Credit
July 2-sale	Cash	20628
	Sales		19100
	Sales Tax Payable		1528
Date	Account	Debit	Credit
July 2-cost	Cost of Merchandise Sold	12400
	Merchandise Inventory		12400
Date	Account	Debit	Credit
July 5-sale	Accounts Receivable-Peacock Company	32800
	Sales		32800
Date	Account	Debit	Credit
July 5-cost	Cost of Merchandise Sold	21300
	Merchandise Inventory		21300
Date	Account	Debit	Credit
July 8-sale	Cash	9072
	Sales		8400
	Sales Tax Payable		672
Date	Account	Debit	Credit
July 8-cost	Cost of Merchandise Sold	5000
	Merchandise Inventory		5000
Date	Account	Debit	Credit
July 13-sale	Cash	8000
	Sales		8000
Date	Account	Debit	Credit
July 13-cost	Cost of Merchandise Sold	5000
	Merchandise Inventory		5000
Date	Account	Debit	Credit
July 14-sale	Accounts Receivable-Loeb Co.	9900
	Sales		9900
Date	Account	Debit	Credit
July 14-cost	Cost of Merchandise Sold	5800
	Merchandise Inventory		5800
Date	Account	Debit	Credit
Jul-15	Cash	32800
	Accounts Receivable-Peacock Company		32800
Date	Account	Debit	Credit
July 16-return	Customer Refunds Payable	1500
	Accounts Receivable-Loeb Co.		1500
Date	Account	Debit	Credit
July 16-cost	Merchandise Inventory	800
	Estimated Returns Inventory		800
Date	Account	Debit	Credit
July 18-sale	Accounts Receivable-Jennings Company	6840
	Sales		6840
Date	Account	Debit	Credit
July 18-freight	Accounts Receivable-Jennings Company		340
	Cash	340
Date	Account	Debit	Credit
July 18-cost	Cost of Merchandise Sold	3900
	Merchandise Inventory		3900
Date	Account	Debit	Credit
Jul-24	Cash	8400
	Accounts Receivable-Loeb Co.		8400
Date	Account	Debit	Credit
Jul-28	Cash	6500
	Accounts Receivable-Jennings Company		6500
Date	Account	Debit	Credit
July 31-freight	Delivery Expense	2010
	Cash		2010
Date	Account	Debit	Credit
July 31-collection	Cash	13700
	Accounts Receivable-Landscapes Co.		13700
Date	Account	Debit	Credit
Aug. 3	Credit Card Expense	1040
	Cash		1040
Date	Account	Debit	Credit
Aug. 10	Sales Tax Payable	2530
	Cash		2530