Question

Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $17,000, terms FOB destination, 1/10, 1/30. The cost of the goods sold was $14,380. 3. Sold merchandise for $12,450 plus 6% sales tax to retail cash customers. The cost of the goods sold was $6,700. 4. Sold merchandise on account to Empire Co., $53,120, terms FOB shipping point, n/eom. TThe cost of the goods sold was $30,810. 5. Sold merchandise for $27,800 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,690. 12. Received check for amount due from Equinox Co. for sale on March 2 14. Sold merchandise to customers who used American Express cards, $14,020. The cost of the goods sold was $8,140. 16. Sold merchandise on account to Targhee Co., $26,900, terms FOB shipping point, 1/10, 1/30. The cost of the goods sold was $15,390 18. Issued credit memo for $5,000 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,010. 19. Sold merchandise on account to Vista Co., 57,750, terms FOB shipping point, 2/10, 1/30. Paid $50 for freight and added it to the invoice. The cost of the goods sold was $4.770. 26. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28. Received check for amount due from Vista Co. for sale of March 19. 31. Received check for amount due from Empire Co. for sale of March 4. 31. Paid Fleetwood Delivery Service $5,850 for merchandise delivered during March to customers under shipping terms of FOB destination Apr. 3. Paid City Bank $890 for service fees for handling MasterCard and American Express sales during March 15. Paid $6,968 to state sales tax division for taxes owed on sales.

Answer 1

Date	General Journal	Debit	Credit
March 2	Accounts Receivable-Equinox Co.	$17000
	Sales		$17000
March 2	Cost of Merchandise sold	$14380
	Merchandise Inventory		$14380
March 3	Cash	$13197
	Sales		$12450
	Sales Tax Payable ($12450 * 6%)		$747
March 3	Cost of Merchandise sold	$6700
	Merchandise Inventory		$6700
March 4	Accounts Receivable-Empire Co.	$53120
	Sales		$53120
March 4	Cost of Merchandise sold	$30810
	Merchandise Inventory		$30810
March 5	Cash	$29468
	Sales		$27800
	Sales Tax Payable ($27800 * 6%)		$1668
March 5	Cost of Merchandise sold
	Merchandise Inventory	$19690
			$19690
March 12	Cash	$16830
	Sales Discount	$170
	Accounts Receivable-Equinox Co.		$17000
March 14	Cash	$14020
	Sales		$14020
March 14	Cost of Merchandise sold	$8140
	Merchandise Inventory		$8140
March 16	Accounts Receivable-Targhee Co.	$26900
	Sales		$26900
March 16	Cost of Merchandise sold	$15390
	Merchandise Inventory		$15390
March 18	Sales Returns & Allowances	$5000
	Accounts Receivable-Targhee Co.		$5000
March 18	Merchandise Inventory	$3010
	Cost of Merchandise sold		$3010
March 19	Accounts Receivable-Vista Co.	$7750
	Sales		$7750
March 19	Accounts Receivable-Vista Co.	$50
	Cash		$50
March 19	Cost of Merchandise sold	$4770
	Merchandise Inventory		$4770
March 26	Cash	$21681
	Sales Discount	$219
	Accounts Receivable-Targhee Co.		$21900
March 28	Cash	$7645
	Sales Discount ($7750 * 2%)	$155
	Accounts Receivable-Vista Co. ($7750 + $50)		$7800
March 31	Cash	$53120
	Accounts Receivable-Empire Co.		$53120
March 31	Delivery Expense	$5850
	Cash		$5850
April 3	Credit Card Expense	$890
	Cash		$890
April 15	Sales Tax Payable	$6968
	Cash		$6968