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 other businesses and occasionally to retail customers. Green Lawn uses the net method under a

 perpetual inventory system.

 July 1. Sold merchandise on account to Landscapes Co., $53,740, terms FOB shipping point, n/eom. The cost of the goods sold

 was $36,020.

 2. Sold merchandise for $11,450 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,150.

 5. Sold merchandise on account to Peacock Company, $18,800, terms FOB destination, 1/10, n/30. The cost of the goods

 sold was $12,700.

 8. Sold merchandise for $28,250 plus 6% sales tax to retail customers who used VISA cards. The cost of the goods sold

 was $17,920.

 13. Sold merchandise to customers who used MasterCard cards, $12,880. The cost of the goods sold was $8,640.

 14. Sold merchandise on account to Loeb Co., $30,200, terms FOB shipping point, 1/10, n/30. The cost of the goods sold

 was $15,570.

 15. Received check for amount due from Peacock Company for sale on July 5.

 16. Issued credit memo to Loeb Co. for merchandise with an invoice amount of $4,700 returned from the sale on July 14.

 The cost of the merchandise returned was $2,690.

 18. Sold merchandise on account to Jennings Company, $8,200, terms FOB shipping point, 2/10, n/30. Paid $80 for freight

 and added it to the invoice. The cost of the goods sold was $4,610.

 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 $6,040 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 $840 for service fees for handling MasterCard and VISA sales during July.

 10. Paid $6,039 to state sales tax division for taxes owed on sales.

 Required:

 Joumalize the entries to record the transactions of Green Lawn Supplies Co. If an amount box does not require an entry, leave it blank.

Answer 1

Date	Account				Debit	Credit
1-Jul	Accounts receivable-Lad sacpes				53,740
	sales					53,740
	cost of goods sold				36,020
	Merchandise inventory					36,020
2-Jul	Cash				12,137
	Sales					11,450
	Sales tax payable					687
	cost of goods sold				7,150
	merchandise inventory					7,150
5-Jul	Accounts receivable-peacock				18,612
	sales					18,612
	cost of goods sold				12,700
	Merchandise inventory					12,700
8-Jul	Cash				29,945
	Sales					28,250
	Sales tax payable					1695
	cost of goods sold				17,920
	merchandise inventory					17,920
13-Jul	Cash				12,880
	sales					12,880
	cost of goods sold				8,640
	Merchandise inventory					8,640
jlu 14	Accounts receivable-Loeb Co				29,898
	sales					29,898
	cost of goods sold				15,570
	Merchandise inventory					15,570
15-Jul	Cash				18,612
	Accounts receivable peacock					18,612
16-Jul	Sales return & allowance				4,653
	Accounts recievable-Loeb co					4,653
	Merchandise inventory				2690
	cost of goods sold					2690
18-Jul	Accounts receivable		jennings		8116
	Sales -					8,116
	cost of goods sold				4,610
	Merchandise inventory					4,610
24-Jul	Cash				25,245
	Accounts receivable loeb					25,245
28-Jul	Cash				8116
	Accont receivable -jennings					8,116
31-Jul	Delivery expense				6,040
	cash					6,040
31-Jul	Cash				53,740
	Account receivable-landscape					53,740
3-Aug	Credit card expense				840
	cash					840
10-Aug	Sales tax payable				6,039
	cash					6,039