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., $16,100, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,700.
2.	Sold merchandise for $24,300 plus 7% sales tax to retail cash customers. The cost of merchandise sold was $15,800.
5.	Sold merchandise on account to Peacock Company, $35,700, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $23,200.
8.	Sold merchandise for $10,400 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,200.
13.	Sold merchandise to customers who used MasterCard cards, $10,000. The cost of merchandise sold was $6,300.
14.	Sold merchandise on account to Loeb Co., $13,600, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,000.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100.
18.	Sold merchandise on account to Jennings Company, $7,300, terms FOB shipping point, 2/10, n/30. Paid $200 for freight and added it to the invoice. The cost of merchandise sold was $4,400.
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 $1,830 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 $870 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,550 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

Date	Account	Debit	Credit
July 16-return

Date	Account	Debit	Credit
July 16-cost

Date	Account	Debit	Credit
July 18-sale

Date	Account	Debit	Credit
July 18-freight

Date	Account	Debit	Credit
July 18-cost

Date	Account	Debit	Credit
July 24

Date	Account	Debit	Credit
July 28

Date	Account	Debit	Credit
July 31-freight

Date	Account	Debit	Credit
July 31-collection

Date	Account	Debit	Credit
Aug. 3

Date	Account	Debit	Credit
Aug. 10

Answer 1

Date wise Journal Entry to be accounted - green Lawn Supplies co
Date	Details		Debit($)	Credit($)
July 1	Account receivable		16,100
	Revenue -Sales			16,100
July 1	Cost of Goods Sold		9,700
	Inventory			9,700
	( account cost part of goods sold)
July 2	Cash		26,001
	Revenue -Sales			24,300
	Sales Tax payable			1,701
	(7%)f $ 24300)
July 2	Cost of Goods Sold		15,800
	Inventory			15,800
	( account cost part of goods sold)
July 5	Account receivable		35,700
	Revenue -Sales			35,700
July 5	Cost of Goods Sold		23,200
	Inventory			23,200
July 8	Cash		10,920
	Revenue -Sales			10,400
	Sales Tax payable			520
	(5%of $ 10400)
July 8	Cost of Goods Sold		6,200
	Inventory			6,200
July 13	Cash		10,000
	Revenue -Sales			10,000
July 13	Cost of Goods Sold		6,200
	Inventory			6,200
July 14	Account receivable		13,600
	Revenue -Sales			13,600
July 14	Cost of Goods Sold		8,000
	Inventory			8,000
July 15	Cash		35,343
	Discount (1%*$35700)		357
	Account receivable			35,700
July 16	Accoounted return of Sales
	and cost for the same
	Sales Return		2,000
	Account receivable			2,000
July 16	Inventory		1,100
	Cost of Goods Sold			1,100
July 18	Freight Charges		200
	cash			200
July 18	Account receivable		7,500
	Revenue -Sales			7,300
	Freight Charges			200
	( Freight charges paid and added with Invoice sent)
July 18	Cost of Goods Sold		4,400
	Inventory			4,400
July 24	Received amount of sale made on 14th July
	with credit memo 16th July
	Sale made on 14th July -$13600
	less - credit memo 16th July $2000
	Cash		11,484
	Discount (1%*$11600)		116
	Account receivable			11,600
July 28	received against sale made on July 18
	Cash		7,154
	Discount (2%*$7300)		146
	Account receivable			7,300
July 31	Paid Black Lab delivery charges
	Delivery expenses		1,830
	cash			1,830
July 31	Received full money - Sale made on 01st July
	Cash		16,100
	Account receivable			16,100
Aug 3	Federal Bank Service charges		870
	cash			870
Aug 10	Sales Tax payable		2,550
	cash			2,550