Question

The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30. 5 Paid freight of $190 on the January 2 purchase. 6 Returned $2,750 of the merchandise purchased on January 2. 13 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of merchandise sold was $22,400. 15 Paid freight of $215 for the merchandise sold on January 13. 17 Paid for the purchase of January 2 less the return and discount. 23 Received payment on account for the sale of January 13 less the discount.

CHART OF ACCOUNTS
Air Systems Company
General Ledger
ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customers Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Rent Revenue EXPENSES 510 Purchases 511 Purchases Returns and Allowances 512 Purchases Discounts 513 Freight In 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense

Journalize the entries to record the transactions of Air Systems Company. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

			DR	CR
Jan	2	Purchase	18200
		Account Payable		18200
	5	Freight in	190
		Cash		190
	6	Account Payable	2750
		Purchase Return and Allowance		2750
	13	Account Receviable	37300
		Sales		37300
	15	Delivery Expense	215
		Cash		215
	17	Account Payable	15450
		Purchase Discount 15450*.02		309
		Cash		15141
	23	Cash	36927
		Sales Discounts 37300*.01	373
		Account Receivable		37300